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Earnings Previews: AMC Entertainment, Cronos, Hecla Mining, Li Auto, Peloton

Peloton
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All three major U.S. equity indexes were slammed Thursday, dropping by 3% to 5%. In the first hour of trading, all the previous day’s gains were wiped out. Every S&P stock sector closed lower, all 30 Dow stocks ended the day in the red and the Nasdaq Composite dropped 5%. The major indexes were trading down shortly after Friday’s opening bell.
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After markets closed on Tuesday, payment provider Block missed consensus estimates on both earnings per share (by two cents) and revenue (by 4.3%). Afterpay, the buy-now-pay-later firm Block acquired in a deal that closed in late January, contributed $130 million to total revenue of $3.96 billion and $92 million to a gross profit of $1.29 billion. Block shares traded down more than 4% early  Friday.

Electric vehicle maker Lucid reported a smaller-than-expected loss and more-than-expected revenue. The company delivered just 360 vehicles in the quarter but said that it sticks by its full-year sales forecast of 12,000 to 14,000 units. Lucid also raised the prices for its cars by $10,000 to $15,000, moving the price range for its Lucid Air models from $77,400 to $139,000 to a new range of $87,400 to $154,000. Shares traded down about 5.6% Friday morning.

DraftKings met the consensus estimate for a loss per share of $1.20 and beat the revenue estimate by about 1.5%. Full-year revenue guidance was increased slightly, and the company also said its EBITDA loss would be smaller than previously forecast. Shares were trading 4.7% early Friday.

Athletic apparel and gear maker Under Armour missed on both the top and bottom lines. Shares traded down nearly 24% early Friday.

Before markets open on Monday, Tyson Foods will report quarterly results, as will Ballard Power, Coty, Lordstown Motors and Palantir Technologies.

Here is a look at five companies set to report results on Monday and Tuesday.

AMC Entertainment

Since its meme stock glory days in June of last year, shares of AMC Entertainment Holdings Inc. (NYSE: AMC) have dropped by 76.5%. Even so, the stock soared so high that for the entire 12-month period through Thursday’s close, the stock is up 56.4%. In March, AMC acquired a 22% stake in a struggling gold mining firm (Hycroft Mining) for $27.9 million. AMC also indicated that this could be the first of more investments in distressed assets. A theatre chain angling to become a private equity fund? AMC reports quarterly results after markets close Monday.


Just nine brokerages cover the stock, and none has a Buy or Strong Buy rating. Only three have rated the shares at Hold. At a recent price of around $14.70 a share, the stock trades about two and a half times higher than its median price target of $6.00. At the high price target of $35.10, the implied gain is 139%.

First-quarter revenue is forecast at $743.43 million, which would be down 36.6% sequentially but up 401.0% year over year. Analysts expect AMC to report a loss per share in the quarter of $0.73, far worse than the prior quarter’s loss of $0.11 per share and better than last year’s quarterly loss of $1.42 per share. For the full 2022 fiscal year, AMC is expected to post a loss per share of $1.14, compared with last year’s loss of $2.50 per share. Revenue is forecast to rise by 76% to $4.45 billion.
AMC is not expected to post a profit in 2022, 2023 or 2024. The stock trades at a sales-to-enterprise value multiple of 3.8 times its forecast 2022 sales, 3.2 times 2023 estimated sales and 3.1 times the 2024 estimated sales. The stock’s 52-week range is $8.93 to $72.62, and AMC does not pay a dividend. Total shareholder return over the past year was about 60.2%.
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Cronos

The share price of Canada-based marijuana producer Cronos Group Inc. (NASDAQ: CRON) has dropped more than 62% over the past 12 months. Over a two-year period, the shares are down almost 50%. Since hitting a peak during the meme stock blowup last February, shares are down close to 81%. Until U.S. law is changed to remove cannabis from the list of dangerous drugs, Cronos and the other Canadian cannabis suppliers can only try to consolidate and hold on.

Of 13 brokerages covering the stock, just three have a Buy or Strong Buy rating. Another eight have rated the shares at Hold. At a share price of around $3.00, the upside potential based on a median price target of $3.92 is 30.7%. At the high price target of $4.96, the implied gain is 62.3%.

First-quarter revenue is forecast at $25.26 million, down 2.4% sequentially and nearly double year over year. Analysts expect Cronos to report a loss per share of $0.08, a penny better than the prior quarter’s loss and better than last year’s quarterly loss of $0.11 per share. For the full 2022 fiscal year, the company is expected to post a loss per share of $0.29, compared with last year’s loss of $0.45 per share. Revenue is forecast to rise by 63.5% to $122.14 million.

Cronos is not expected to post a profit in 2022 or 2023. The stock trades at 66.1 times estimated 2024 earnings of $0.05 per share. The stock’s 52-week range is $2.84 to $9.42. Cronos does not pay a dividend, and total shareholder return for the past year was negative 61.9%.

Hecla Mining

Idaho-based Hecla Mining Co. (NYSE: HL) is the largest U.S. producer of silver. Over the past 12 months, the stock price has dropped by more than 18%.

Silver prices have bounced around in the past year, and the bounces have led to a decline of about 18% in the price of silver. In the first quarter of this year, Hecla produced 3.3 million ounces of silver, a sequential increase of 3%, and 41,642 ounces of gold, a 13% decline. The company expects silver production to increase this year and next. When Hecla reports quarterly results Tuesday morning, investors will be listening for more details on production and silver prices.

Of nine brokerages covering the stock, there are five Hold ratings and four Buy or Strong Buy ratings. At a trading price of around $5.10 a share, the upside potential to the median price target of $8.00 is 36.3%. At the high price target of $11, the upside potential is 73.8%.

First-quarter revenue is forecast to rise 0.55% sequentially and decline by 13.3% year over year to $186.09 million. Adjusted earnings per share (EPS) are forecast at $0.03, down 57.6% sequentially and 50.0% lower year over year. For full fiscal 2022, EPS are forecast to decline by 16.2% to $0.12 and revenue is expected to increase by 2.3% to $825.83 million.

Hecla stock trades at 42.3 times expected 2022 EPS, 23.3 times estimated 2023 earnings of $0.22 and 32.8 times estimated 2024 earnings of $0.15 per share. The stock’s 52-week range is $4.50 to $9.44, and the company pays an annual dividend of $0.04 per share (yield of 0.69%). Total shareholder return in the past year is negative 18.3%.

Li Auto

Beijing-based electric vehicle maker Li Auto Inc. (NASDAQ: LI) has seen its share price gain about 11.6% over the past 12 months. At its peak during that period, the stock traded up more than 80%. The company will report results before markets open on Tuesday.
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The company delivered nearly 32,000 vehicles in the first quarter, as deliveries were hampered by new outbreaks of COVID-19 in Changzhou where Li sources parts and assembles its cars. The company has also been identified as one of more than 80 China-based companies that may be kicked off U.S. stock exchanges for failing to meet recently enacted federal accounting requirements. Li has until May 12 to dispute its placement on the list.

Of 21 brokerages covering the firm, all but one have a Buy or Strong Buy rating. At a share price of around $21.70, the upside potential based on a median price target of $41.00 is almost 90%. At the high price target of $54.00, the upside potential is 149%.

First-quarter revenue is forecast at $1.42 billion, down 14.7% sequentially and 60.3% year over year. Analysts have forecast EPS of $0.03, following a per-share profit of $0.11 in the prior quarter and better than the per-share loss of $0.03 in the same quarter last year. For fiscal 2022, current estimates call for EPS of $0.07, up 13.1%, on sales of $7.75 billion, up about 82.5%.

The stock trades at 297.1 times expected 2022 EPS, 67.2 times estimated 2023 earnings of $0.32 and 33.8 times estimated 2024 earnings of $0.64 per share. The stock’s 52-week range is $15.98 to $37.45, and the company does not pay a dividend. Total shareholder return in the past year is 15.4%.

Peloton

Shares of fitness product maker Peloton Interactive Inc. (NASDAQ: PTON) have declined by 82.4% over the past 12 months. The company has been unable to parlay its big gains during the pandemic into a sustainable model. On Thursday, The Wall Street Journal reported that the company is exploring a sale of 15% to 20% of the company to raise capital for a turnaround. In addition to the usual suspects, a large tech firm like Amazon or Apple might be interested. Peloton reports quarterly results first thing Tuesday morning.

Analysts have remained mostly bullish on the company. Of 30 brokerages covering the shares, 16 have a Buy or Strong Buy rating, while another 12 rate the stock at Hold. At a share price of around $17.00, the upside potential based on a median price target of $45.00 is almost 165%. At the high target of $60, the upside potential is 253%.

For the company’s third quarter of fiscal 2022, which ended in March, analysts expect revenue to total $969.82 million. That would be 14.5% lower sequentially and down 23.0% year over year. Analysts also expect a loss per share of $0.94, better than the $1.22 loss per share in the prior quarter and much worse than the break-even finish in the year-ago quarter. For the full fiscal year ending in June, analysts estimate a loss per share of $3.88, compared to a loss of $0.05 per share last year, on revenue of $3.73 billion, down about 7.2%.


Peloton is not expected to post a profit in 2022, 2023 or 2024. The stock’s estimated 2022 sales to enterprise value multiple is 1.5 times. That multiple drops to 1.4 in 2023 and 1.2 in 2024. The stock’s 52-week range is $16.67 to $129.70, and Peloton does not pay a dividend. Total shareholder return over the past year is negative 79.7%.

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