Earnings Previews: Cameco, Canopy Growth, CVS Health

Fourth-quarter revenue is forecast at $360.44 million, which would be up 26.4% sequentially but down almost 17.0% year over year. Analysts expect Cameco to post adjusted earnings per share (EPS) of $0.01, better than the prior quarter’s loss of $0.22 per share but well short of the year-ago profit of $0.11 per share. For the full fiscal 2021 year, the loss per share is forecast at $0.22, worse than the $0.13 per share loss in 2020, on sales of  $1.15 billion, down 18.4%.

Cameco stock trades at 90.41 times expected 2022 earnings of $0.22 and 126.7 times estimated 2023 earnings of $0.16 per share. The stock’s 52-week range is $14.16 to $28.49. Cameco pays an annual dividend of $0.06 (yield of 0.33%). Total shareholder return for the past year was 41.15%.

Canopy Growth

Marijuana grower and cannabis products maker Canopy Growth Corp. (NASDAQ: CGC) has seen its share price drop by more than 81% over the past 12 months. It is the largest publicly traded cannabis company by market cap, with a valuation of around $3.18 billion, nearly $2 billion lower than at the end of the prior quarter. To repeat our comment from last quarter: Nothing will bolster marijuana stocks until U.S. regulators remove the dangerous drug label stuck on cannabis decades ago.

Analysts are losing confidence in the stock. Of 22 brokerages covering the shares, 11 have a Hold rating and nine have a Sell or Strong Sell rating. Only two have given the shares a Buy rating. At a share price of around $7.96 and a median price target of $7.99, there’s little expected growth. At the high price target of $22.21, the upside potential is 179%.

Analysts estimate that Canopy Growth’s third-quarter revenue for fiscal 2022 will come in at $107.68 million, up 3.8% sequentially and 2.1% higher year over year. The consensus estimate calls for an adjusted loss per share of $0.25, down sharply from an adjusted loss of $0.01 in the prior quarter but better than the year-ago loss of $1.01 per share. For the full fiscal year, analysts expect a loss of $0.11 per share, significantly better than last year’s loss of $2.51 per share. Full-year revenue is forecast at $437.67 million, down about 9.4%.

Canopy Growth is not expected to post a profit in 2022, 2023 or 2024. The company’s sales to enterprise value multiple for 2022 is 6.7, 5.6 for 2023 and 4.6 for 2024. The stock’s 52-week range is $6.64 to $56.50, and Canopy Growth does not pay a dividend. Total shareholder return for the past year is negative 81.5%.

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