Cresco Labs Inc. (PNK:CRLBF) is a prominent player in the cannabis industry, operating within the Zacks Medical - Products sector. The company is known for its cultivation, manufacturing, and distribution of cannabis products. Despite its innovative approach, Cresco Labs faces stiff competition from other cannabis companies striving for market dominance.
On March 14, 2025, Cresco Labs reported an earnings per share (EPS) of -$0.01, aligning with the estimated EPS. This consistency with the Zacks Consensus Estimate marks a change from the previous year when the company had positive earnings of $0.01 per share. In the prior quarter, Cresco Labs had a negative surprise, reporting a loss of $0.02 per share against an expected loss of $0.01.
Despite the earnings loss, Cresco Labs generated $176 million in revenue, surpassing the estimated $167.55 million. This revenue performance is consistent with the company's trend of exceeding consensus revenue estimates in three of the last four quarters. However, it is a decrease from the previous year's revenue of $188.24 million, indicating challenges in maintaining growth.
Cresco Labs' financial ratios provide insight into its current financial health. The company has a negative price-to-earnings (P/E) ratio of -3.81, reflecting ongoing losses. Its price-to-sales ratio of 0.45 suggests the stock is valued at less than half of its sales. The enterprise value to sales ratio is 1.17, indicating the company's total valuation relative to its sales.
The company's debt-to-equity ratio stands at 1.51, showing more debt than equity, which could be a concern for investors. However, the current ratio of 1.97 indicates that Cresco Labs has nearly twice as many current assets as current liabilities, suggesting a positive short-term financial position. Despite challenges, Cresco Labs continues to navigate the competitive cannabis market.
