Sundial Stock Is Being Hurt by Late Financial Results Reporting

Stock Market

Investors in Sundial Growers (NASDAQ:SNDL) still do not have any financial results for 2021 from the Canadian cannabis company. This has hurt SNDL stock since peaking at 81 cents on Mar. 25. On Friday, Apr. 8, it closed at 56 cents. However, year-to-date (YTD) the stock has held up fairly well and is only down very slightly.

On Mar. 28, Sundial said it should file its 20-F with the U.S. Securities and Exchange Commission (SEC) on or before Apr. 14. In addition, it said, “Sundial expects to report record adjusted EBITDA from continuing operations for the full year 2021.”

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It acts as a comparable measure of cash flow before certain obligations and non-cash charges typical in the industry. The company claims that the rules of the Sarbanes-Oxley Act of 2002 (“SOX”) require its auditing work to be especially careful and detailed.

Estimates for SNDL Stock

So far, five analysts surveyed by Refinitv, as seen on Yahoo! Finance, expect sales to fall from $50.5 million in 2020 to $44.03 million in 2021. This could potentially be due to lower store sales of cannabis products in 2021 due to Covid-19. Moreover, analysts now expect sales to reach $625.7 million in 2022 due to the company’s latest acquisitions.

In the fall of 2021, Sundial purchased Inner Spirit, a retailer and franchisor of Spiritleaf recreational cannabis stores across Canada. On Mar. 31, Sundial completed the acquisition of Alcanna, worth about $320 million in cash and securities in SNDL stock.

So far, analysts are positive on SNDL stock. The average price target of 5 analysts surveyed by Refinitiv is 81 cents per share, or 44.6% over the most recent closing price. However, the latest major report on the stock is an upgrade from ATB Capital as of July 2021. Most analysts will likely revisit SNDL stock and adjust their recommendations when Sundial reports its earnings and financial condition, as well as its outlook going forward this coming week.

On the date of publication, Mark Hake did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

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