Investing
Earnings Previews: Lordstown Motors, Sundial Growers, Hexo, Dollar General
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Tuesday afternoon’s and Wednesday morning’s noteworthy earnings reports were included in our Monday preview. We covered coming reports from homebuilder Lennar, security software maker CrowdStrike, Eastman Kodak and Chinese e-commerce platform provider Pinduoduo.
Here’s a look at four stocks scheduled to report quarterly results after markets close Wednesday or before they open Thursday morning.
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Lordstown Motors Corp. (NASDAQ: RIDE) is scheduled to report fourth-quarter and full-year 2020 results after markets close Wednesday afternoon. Far more serious for the company is a short seller report charging that the company has overstated the number of preorders it has taken for its Endurance all-electric pickup. The company has said it will begin delivering vehicles in September of this year.
Consensus estimates call for a loss per share of $0.10 on essentially no revenue. For the full fiscal year, analysts currently estimate a loss of $0.60 per share on sales of around $106 million.
Shares traded Tuesday at around $15.50, implying a potential upside of around 108% to the consensus price target of $32.20. At the high target of $50.00, the potential upside on the shares is 223%. The company is not expected to post a profit until after the 2022 fiscal year.
Sundial Growers Inc. (NASDAQ: SNDL) is also expected to report quarterly results after markets close Wednesday. The Calgary-based grower and distributor of cannabis products for the recreational user market has seen its share price drop by more than 80% since coming public in September of 2019. Though the company is based in Canada, its stock trades only in the United States, and all its business is done in Canada.
Estimates for the lightly followed stock call for earnings per share of $0.06, more than 16 times better than last year’s loss of $1.02 per share. Sales are forecast at $12.1 billion, down about 24% year over year. For the full fiscal year, estimates call for a loss per share of $0.43 on $57.1 million in revenue.
Shares traded Tuesday at around $1.60, well above a price target of $0.39 and a high target of $0.46 per share. Like many of the Canadian pot companies, Sundial is hoping for a change in U.S. law that will decriminalize marijuana at the federal level. Partly because of its low price, Sundial stock trades more than 542 million shares daily.
Hexo Corp. (NYSE: HEXO) is another cannabis producer and distributor based in Canada. The company is expected to report fiscal second-quarter results before markets open on Thursday morning.
Analysts expect Hexo to post a quarterly loss of C$0.05 per share, about 95 times better than a C$4.52 loss posted in the same period last year. Revenue is nearly double year over year at C$32.5 million. Estimates for the fully 2021 fiscal year call for a loss per share of C$0.17 on sales of C$139.8 million.
Shares traded at $7.55 Tuesday in New York, in a 52-week range of $1.38 to $11.04. The consensus price target on the stock is C$6.94 (about $5.57). The stock is not expected to post a profit until fiscal 2023.
Also on Thursday morning, Dollar General Corp. (NYSE: DG) is scheduled to report quarterly results. Analysts expect the discount retailer to report earnings per share of $2.72, up about 30% year over year, on sales of $8.33 billion, up 16%. For the full fiscal year, analysts currently estimate EPS of $10.37 on $33.63 billion in revenue.
Shares traded Monday at around $194.50, implying a potential upside of around 23% to the consensus price target of $238.68. At the high target of $261.00, the potential upside on the shares is 34%. The stock currently trades at around 18 times expected 2021 earnings, 19 times estimated 2022 EPS and 17 times expected 2023 earnings.
Dollar General pays an annual dividend of $1.44 (yield of 0.75%).
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