Cronos (CRON) reports third-quarter earnings after the closing bell Tuesday, with the theme of rising sales against soaring costs likely to be on display again as the cannabis producer continues to ramp-up spending to support growth.
In its previous quarterly report, the company said operating losses would likely widen amid efforts to increase in its investments in R&D, sales and marketing programs.
In August, Cronos announced the acquisition of Redwood’s four operating subsidiaries for $300 million as it looks to break into the hemp-derived CBD (cannabidiol) market.
Cronos is expected to report a loss of 3 cents per share on revenue of $10.41 million.
Tilray (TLRY) will also report earnings after bell, with analysts forecasting a loss of 3 cents share on $49.4 million in revenue.
Sentiment in the broader cannabis industry has soured somewhat as the legalization of cannabis in Canada has not delivered the rapid growth many had expected.
"A psychological shift has take place from everyone wanting to own (cannabis) to everyone involved now feeling burned," said Richardson GMP portfolio manager Chris Kerlow. “I think many investors are now over (cannabis)."
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