Cresco Labs Inc.’s stock rose by 8.4% on Wednesday after third-quarter revenue at the U.S. cannabis multi-state operator beat the FactSet consensus estimate, despite a wider loss mostly due to a non-cash impairment. Cresco Labs
said its third-quarter net loss increased to $113.5 million, from $43.5 million in the year-ago period. Cresco Labs did not provide a loss-per-share figure, but based on 468.96 million total shares outstanding as of Sept. 30, the company lost about 24 cents a share in its latest quarter.
The loss in the latest quarter included a $129 million non-cash impairment. Third-quarter revenue fell to $190.6 million from $210.5 million in the year-ago quarter, as Cresco Labs scaled back operations to contain costs. Cresco Labs beat the FactSet consensus revenue estimate of $183.6 million. The company said it has scaled back and restructured its California operations, and sold its subscale processing operation in Maryland. It also wrapped up its exit from the Arizona market by selling assets in the state for $7 million. Looking ahead, Cresco Labs expects fourth-quarter revenue to fall by mid-single digits from the third quarter, due partly to seasonal weakness and its decision to move out of Arizona. It’s also adding new stores in Florida and Pennsylvania. Cr …