Why Did Cronos Group (CRON) Delay Their Earnings Report?

: CRON | Cronos Group Inc. - Common Share News, Ratings, and Charts

CRON – This week Cronos Group (CRON) announced that they would be delaying their fourth-quarter and full-year earnings report.

It’s been a tough week for Wall Street and the cannabis sector. Cowen hit 3 cannabis companies firms with downgrades on Monday, the stock markets have been plunging due to the spread of the coronavirus, and Cronos Group (CRON) announced that they would be delaying their fourth-quarter and full-year earnings report. 

CRON was set to report earnings this week on Thursday, February 27th.  There was no reason given as to why the earnings release will be postponed along with no new specific date given for the delayed filing. 

 “The company has had a delay in the completion of its financial statements and will make a further announcement in a subsequent press release to schedule the date and time of the earnings conference call,” Cronos said in a statement.

So is this a negative sign? 

Could be.  One thing that we do know for sure is that the market hates uncertainty and as a result CRON slid to 52-week low.

So what could be the cause of delay for CRON? 

This quarter’s results will be the company’s first after they announced a change in its dormitory and primary listing from Canada to the United States.

CRON is now primarily a United States-based dual-listed firm. This means that it needs to file its upcoming reports under the United States Generally Accepted Accounting Principles (GAAP) and not under International Financial Reporting Standards (IFRS). IFRS filing is the standard for Canada, but that’s not the case for CRON anymore as they primarily a United States-based firm. 

Based on the delay announced on Monday, we are estimating that the change in reporting standards could be the culprit. 

United States GAAP and IFRS are substantially different. IFRS is principles-based, which means there is some room for flexibility. On the other hand, US GAAP is focused directly on rules.

Rules need to be extremely clear and defined in case someone unintentionally breaks them. It takes a significant amount of time to make these interpretations, even more so when a company is changing from a more relaxed set of financial reporting guidelines to a much more strict set of accounting principles.

Although US GAAP principles are slowly becoming more flexible, there are still differences that remain in reversals of impairment losses, fixed assets and intangibles as well as allowable inventory accounting methods. Meanwhile, fixed asset accounting along with leases and intangible asset accounting treatments still need corrections.

That said, at the end of the day, CRON is still a publicly-traded company and should be able to meet the market’s minimum reporting standards regardless.


CRON shares were trading at $6.09 per share on Wednesday afternoon, up $0.06 (+1.00%). Year-to-date, CRON has declined -20.60%, versus a -3.22% rise in the benchmark S&P 500 index during the same period.


About the Author: Aaron Missere


Aaron is an experienced investor who is also the CEO of Departures Capital. His primary focus is on the cannabis industry. He also hosts a weekly show on YouTube about marijuana stocks. Learn more about Aaron’s background, along with links to his most recent articles. More...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
CRONGet RatingGet RatingGet Rating
CGCGet RatingGet RatingGet Rating
GWPHGet RatingGet RatingGet Rating
APHAGet RatingGet RatingGet Rating
TLRYGet RatingGet RatingGet Rating
CTSTGet RatingGet RatingGet Rating
MJGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com


Updated 2024 Stock Market Outlook

The bull market continues to rage on with the S&P 500 (SPY) making new highs. That is the past...the question is what does the future hold? That is why 44 year investment veteran Steve Reitmeister provides this updated 2024 Stock Market Outlook to help you carve a path to outperformance the rest of the year. Read on below for the full story...

3 Energy Stocks Set to Soar Beyond Expectations

Given the geopolitical tensions, increasing global oil demand, and supply adjustments, the energy sector is poised for robust growth. Therefore, investors might consider investing in energy stocks TechnipFMC (FTI), Weatherford International (WFRD), and ChampionX (CHX), which are poised to exceed expectations. Keep reading…

Has Carnival (CCL) Stock Turned Into a Buy After Earnings Release?

Carnival Corporation (CCL) reported record revenue in its most recent quarter but still faces a negative bottom line. The collapse of Francis Scott Key Bridge brings more uncertainty to its financials. Given these events, what stance should one take with CCL stock? Read more to find out…

3 China Stocks Positioned for Long-Term Growth

Despite facing challenges, the Chinese economy has demonstrated resilience, as evidenced by recent robust industrial output and retail sales data. Given this outlook, it might be an opportune time to own three top-notch China stocks, JD.com, Inc. (JD), China Automotive Systems (CAAS), and Youdao, Inc. (DAO). Read on…

Investor Alert: “Buy the Rumor, Sell the News!”

Everyone knows that the Fed is going to cut rates at some point this year. That is the worst kept secret on the planet helping to explain how we keep making new highs for the for the S&P 500 (SPY). Unfortunately that creates an interesting predicament for stocks after rates are cut. Plus another hurdle in the 2024 Presidential election. Steve Reitmeister is here to share his insights on the market outlook along with a preview of his top 12 stocks to outperform. Read on for more...

Read More Stories

More Cronos Group Inc. - Common Share (CRON) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All CRON News