What happened

One of the leading U.S. marijuana companies, multistate operator (MSO) Cresco Labs (CRLBF -4.84%), posted its latest set of quarterly earnings on Wednesday. Somewhat uncharacteristically, investors greeted this with enthusiasm, hardly a typical reaction to such events in the struggling weed sector. As a result, Cresco's share price closed the day almost 5% higher, a far better performance than the 0.8% slump of the S&P 500 index.

So what

In its second quarter, Cresco booked revenue of $198 million. This was up on a sequential basis, if only marginally (by 2%), and down by 9% on a year-over-year comparison. The net loss landed just shy of $43.5 million compared to the cannabis company's first-quarter deficit of nearly $28 million (roughly $0.15 per share) and the $8.3 million loss in the year-ago period.

Although analysts were collectively modeling a far narrower net loss of $0.04 per share for Cresco, the company beat on the top line. The average revenue estimate from those prognosticators was just under $195 million.

At this point, heavy losses are basically expected in the marijuana industry, so investors were clearly undaunted by the bottom-line figure.

Also, there were numerous positive developments for Cresco during the period; it generated operating cash flow of $18 million, kept its No. 1 market share slot in the thriving weed markets of Massachusetts and Illinois, as well as high-potential Pennsylvania (which, for the moment, has only legalized medical pot but looks set to flip the switch soon on recreational). 

Now what

Management is also reining in costs, which is another plus for the ambitious Cresco. The company quoted its CEO Charles Bachtell as saying that "We're pleased to see improved profitability and cash flow in our core markets, which positions us well for the capital-efficient growth and expansion opportunities that lie ahead."