The earnings continue coming, and also some noteworthy titles are reporting following week, companies which have seen their fair share of volatility at 2020. Ranging from cannabis to rail lines into the attractive but murky sector of sports gambling, the stocks to see that week are Canopy Development (NYSE:CGC), Royal Caribbean (NYSE:RCL), and DraftKings (NASDAQ:DKNG).
Canopy Growth was having a challenging time before COVID-19 hit. The cannabis manufacturer had a talk price pushing $50 in April 2019, but a series of missteps and failure to live up to large market expectations has directed stocks into fall to only one-third of the all-time highs for the writing.
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Earnings growth has been enormous with yearly earnings ranging from 214% in financial 2017 to 76% in financial 2020. Despite earnings coming in at $399 million Canadian dollars ($298 million) a year ago, the business turned in a reduction of CA$1.39 billion — its greatest net loss ever.
Canopy Development is scheduled to report Aug. 10, and quotes are calling for a reduction of CA$0.46 each share. That could be an improvement within the CA$0.54 per share loss reported at the year-ago period, but it nonetheless leaves Canopy Growth as a business fighting to locate profitability. With investors obviously no more cutting edge this stock any idle concerning financial performance, the business is going to have to provide in order for stocks to come across some bullish momentum.
2020 is merely a clean for cruise lines. Royal Caribbean recently declared it would be suspending all cruises until November, prolonging a sales fallout that is placing cruise lines at a precarious position. That has to be particularly discouraging for investors since Royal Caribbean was steadily rising earnings leading to the outbreak.
Royal Caribbean also reports Aug. 10, and quotes are calling for a reduction of $4.55 each share. The brunt of the adverse effect from the coronavirus outbreak and shutdowns occurred in the next quarter, along with the railroad operator will feel that pain. More fascinating will be management’s comment on strategies moving ahead. First-quarter losses totaled $1.44 billion. The organization assembled a war chest of $3.89 billion in cash in this end of the first quarter and has since taken on more money, but that is only going to take the organization so much as it’s burning roughly $1 billion of cash quarterly “during [this] prolonged suspension operations.”
There has been lots of investor enthusiasm over the potential of sports betting. DraftKings is standing out as a leader in that fledgling opportunity, but the COVID-19 pandemic has most certainly put a snag in the rollout of this broader industry. It will be interesting to see how much of an increase in revenue has been achieved thanks to golf — the one sport that remained prevalent throughout the second quarter.
Analysts are calling for a loss of $0.14 per share in the second quarter on just $65 million of revenue (with an estimated full-year loss of $0.62 per share). Obviously, those figures do not exactly add up to a company with a $12 billion market cap, but DraftKings is a growth stock positioned to claim substantial market share in a massive new corner of the gambling industry. Prior to its integration with SBTech, DraftKings alone reported 30% revenue growth in the first quarter. No doubt, growth and its continued momentum will be the focal point of DraftKings’ results this week.
Perhaps even more crucial than the numbers we’ll see this week is the fate of major fall sport. Football is big money, and it’s still questionable whether the NFL and college football will get their full seasons in. If not, it would be a big loss of potential income for DraftKings and its sports gambling peers.
DraftKings is scheduled to report its next-quarter effects on Aug. 14.