Investing

Earnings Previews: Blink, Lordstown Motors, Phunware, Sundial, TMC

Sundial

Sundial Growers Inc. (NASDAQ: SNDL) is one of the most heavily traded meme stocks around. More than 85 million shares change hands daily, largely due to the below $1.00 price.

Like all cannabis companies, Sundial is holding on until U.S. legislation removes the dangerous drug label that constrains the U.S. market. Even if federal legalization does come, the industry faces stiff price competition from illegal suppliers and high tax payments from federal, state and local taxes that see cannabis boost to revenue. In spite of all this, Sundial’s share price is up more than 50% over the past 12 months, thanks entirely to an early February spike in meme stock prices.

Of six analysts covering the firm, four have a Hold rating on the stock, and the other two rate the stock at Strong Sell. At a price of around $0.70, the upside potential based on a median price target of $0.80 is 14.3%. The high price target is $0.81, lifting the upside potential to 15.7%.

Sundial is expected to post third-quarter revenue of $13.27 million, up 80% sequentially and 3% higher year over year. Analysts expect the company to break even for the quarter, after posting a loss per share of $0.02 in the prior quarter. For the full year, the company is expected to post a loss per share of $0.08 on sales of $45.25 million, lower by about $2.6 million year over year.

Sundial is not expected to post a profit in 2021, 2022 or 2023. The enterprise value-to-sales multiple is expected to be 14.2 in 2021. Based on estimated earnings for 2022 and 2023, multiples are 9.2 and 7.4, respectively. The stock’s 52-week range is $0.24 to $3.96. Sundial does not pay a dividend.

TMC

TMC the metals company Inc. (NASDAQ: TMC) came public in early September following a SPAC merger. TMC plans to mine an undersea deposit of metals, including cobalt, copper, and manganese that can be collected from the ocean floor with little to no environmental impact. All the metals are contained in what are known as polymetallic nodules and are in high demand for use in lithium-ion batteries.

The initial exuberance that led to a 25% share price gain gave way to a decline that started about two weeks later that has resulted in a share price decline of almost 69% since the IPO.

The only analyst covering the stock has a Buy rating. At $3.20 per share, the upside to a price target of $20 is about 525%.

There are no quarterly or full-year estimates for profits or revenues, nor are there any multiples based on those estimates. TMC stock’s 52-week trading range is $2.84 to $15.39. More than 9 million shares are traded daily, and the company’s market cap is around $720 million.

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