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Earnings Previews: Canopy Growth, Cinemark, DraftKings, Norwegian Cruise Line

Revenue is forecast to rise sequentially by 128% to $260.98 million. In the same quarter last year, Cinemark reported revenue of just $8.97 million. Analysts expect an adjusted loss per share of $1.13, a sequential improvement of $0.62 per share, and $0.22 per share less than in the second quarter last year. For the full year, Cinemark is expected to lose $3.55 per share compared to a per-share loss of $5.11 a year ago. Revenue is expected to rise by 116% to $1.48 billion for the fiscal year.

The stock trades at 17.7 times estimated 2022 earnings and 10.4 times estimated 2023 earnings. The stock’s 52-week range is $7.56 to $27.85. Cinemark does not pay a dividend.

DraftKings

Digital sports betting company DraftKings Inc. (NASDAQ: DKNG) came public in a SPAC merger in April of 2020. Since then, the stock has risen by about 150%. For the year to date, however, shares are up less than 5%. The company has done well, but investors are most likely to hear about how DraftKings is positioned to compete for the expected legalization of mobile sports betting in New York this year. Gross revenue of $1 billion is a number worth fighting over.

Of 26 brokerages, 18 rate DraftKings a Buy or Strong Buy, and the rest have the shares at Hold. At a price of around $48.55, the implied upside based on a median price target of $71 is 46%. At the high price target of $105, the implied upside is 116%.

Analysts are forecasting revenue of $247.22 million for the second quarter, a sequential decline of nearly 21% but more than triple the amount posted in the same quarter last year. Analysts also expect a quarterly loss of $0.52 per share, better than the $0.79 per-share loss in the prior quarter. For the full year, DraftKings is expected to lose $2.23 per share, again better than last year’s loss of $2.80 per share. Revenue for the 2022 fiscal year is forecast to rise by 92% to $1.18 billion.

DraftKings is not expected to post a profit through the 2024 fiscal year. At the current share price, the stock trades at 15.4 times its estimated enterprise-value-to sales for 2022, 11.1 times for 2023 and 8.2 times for 2024. The stock’s 52-week range is $30.51 to $74.38. DraftKings does not pay a dividend.

Norwegian Cruise Line

Norwegian Cruise Line Holdings Ltd. (NYSE: NCLH) has posted a gain over the past 12 months of about 72%. Yet the stock still trades down nearly 62% from its level in January of 2020. Recovery in the cruise industry is going to be slow and not particularly steady as the pandemic seems determined to kick the props out from under the business just as it seems to be heading for brighter shores.

Of 17 brokerages covering the stock, seven rate Norwegian as a Hold and the nine rate the shares a Buy or Strong Buy. At a price of around $22.50, the implied upside based on a median price target of $32.50 is 44%. At the high price target of $40, the implied upside is 78%.

Analysts are forecasting revenue of just $9.1 million for the second quarter, a sequential increase of nearly 195% but a decline of 46% year over year. Analysts also expect a quarterly loss of $2.00 per share, a little better than the $2.03 per-share loss in the prior quarter. For the full year, Norwegian is expected to lose $6.64 per share, again better than last year’s loss of $8.64 per share. Revenue for the 2022 fiscal year is forecast to fall by 23.4% to $980.63 million.

Norwegian is forecast to trade at 64.0 times its current trading price in 2022 and 12.8 times in 2023. The stock’s 52-week range is $13.27 to $34.49. The company does not pay a dividend.

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