Investing

Earnings Previews: Bitfarms, Li Auto, Sundial Growers

Li Auto

Beijing-based electric vehicle maker Li Auto Inc. (NASDAQ: LI) has seen its share price gain about 3.7% over the past 12 months. The stock price reached its peak in late June and has dived by nearly 23% since then. Li is scheduled to report results first thing Monday morning.

Reuters reported Thursday morning that a joint venture with Chinese ride-hailing company DiDi has filed for bankruptcy. The venture was formed in 2018 to produce a customized vehicle for ride-hailing services. DiDi was the majority partner with 51% of the joint venture and Li owned the rest. The company delivered 10,422 vehicles in July, up 21.3% year over year.

Of 25 brokerages covering the stock, 23 have a Buy or Strong Buy rating. At a share price of around $31.50, the upside potential based on a median price target of $46.60 is almost 48%. At the high price target of $62.00, the upside potential is nearly 97%.

Second-quarter revenue is forecast at $1.41 billion, down more than 6% sequentially but up nearly 168% year over year. Analysts have forecast a loss per share of $0.04, compared to EPS of $0.07 in the prior quarter, and a per-share loss of $0.01 in the same quarter last year. For the 2022 fiscal year, current estimates call for EPS of $0.01, down from EPS of 0.06% in 2021, on sales of $7.97 billion, up about 87.4%.

The stock trades at 90.2 times expected 2022 EPS, 46.6 times estimated 2023 earnings of $0.68 and 45.5 times estimated 2024 earnings of $0.69 per share. The stock’s 52-week range is $16.86 to $41.49, and the company does not pay a dividend. The total shareholder return in the past year is 3.7%.

SNDL

Cannabis grower and product maker SNDL Inc. (NASDAQ: SNDL) shortened its name from Sundial Growers last month to match its ticker symbol. Maybe it helped. Since posting a 52-week low in late July, the shares have jumped 25%. A 1-for-10 reverse stock split probably helped more. At least it saved the company its Nasdaq listing. The company has approved a resolution allowing it to reduce its share count by as much as 1-for-25, so another reverse split may be coming. The company is scheduled to report results after markets close Friday.

Of four analysts covering the firm, three have a Hold rating and the other has rated the stock at Buy. At a share price of around $2.85, the upside potential based on a median price target of $5.01 is 75.8%. The high price target is $8.04, lifting the upside potential to 182%.


SNDL is expected to post second-quarter revenue of $162.42 million, up more than 1,000% sequentially and up from $7.38 million in the year-ago quarter. (The massive increases are the result of SNDL’s acquisition of liquor retailer Alcanna earlier this year). Analysts expect the company to post a loss per share of $0.02 for the quarter after posting a loss per share of $0.05 in the prior quarter. For the full year, the company is expected to post a loss per share of $0.12, up sharply from last year’s loss per share of $0.55. Revenue is pegged at $522.76 million, up gigantically from $44.39 million in 2021 sales. Thanks again Alcanna.

SNDL’s enterprise value to sales multiple is expected to be 1.0 in 2022, dipping to 0.8 in 2023 and 0.7 in 2024. The stock’s split-adjusted 52-week range is $2.12 to $9.60. Sundial does not pay a dividend, and the total shareholder return for the past year was negative 65%.

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