CRLBF, SEMR, TBRD, HI, GPS: Earnings Preview

By Kirsteen Mackay

Nov 14, 2022

This week’s company earnings include Cresco Labs (CRLBF), SEMRush Holdings (SEMR), Thunderbird Entertainment Group (TBRD), Hillenbrand (HI), and Gap (GPS).

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CRLBF, SEMR, TBRD, HI, GPS: Earnings Preview

Other big names reporting this week include NVIDIA (NASDAQ: NVDA) and a bevy of retailers, including Walmart (NYSE: WMT), Target (NYSE: TGT), Lowe's (NYSE: LOW), Macy's (NYSE: M), Bath & Body Works (NYSE: BBWI), Kohl's (NYSE: KSS), Williams-Sonoma (NYSE: WSM), Foot Locker (NYSE: FL), and Metro (TSE: MRU).

Will tech stocks recover? 

Here are five  stocks with upcoming earnings to keep on your radar:

Cresco Labs (OTCMKTS: CRLBF)

Cannabis stock Cresco Labs (OTCMKTS: CRLBF) is due to report its quarterly earnings on November 15. FactSet analyst consensus sees EPS at -$0.02 and sales at $279m. The CRLBF share price is down 46% YTD, but both 2022 sales and earnings are slated to show an improvement over 2021.

In March, Chicago-based Cresco announced it is merging with Columbia Care. Last week Cresco Labs and Columbia Care announced its intention to sell some of its New York, Illinois, and Massachusetts assets to an entity owned and controlled by Sean "Diddy" Combs for a purchase price of up to $185m.

Combs' proposed acquisition will create the largest black-owned cannabis company in the world and affirms his commitment to the economic inclusion of underrepresented groups in cannabis.

Cresco and Columbia Care are in the process of divesting other assets to meet regulatory requirements ahead of closing the Columbia Care Acquisition. Additional announcements regarding those divestitures will be forthcoming. The company is working through regulatory reviews and approvals to complete the Columbia Care Acquisition as soon as possible, which is now expected to be around the end of the first quarter of 2023.

Cresco Labs' forward price-to-earnings ratio (P/E) is 130, and it does not offer a shareholder dividend. 

SEMRush Holdings (NYSE: SEMR)

SEMRush Holdings (NYSE: SEMR) is expected to report its Q3 earnings on November 14. FactSet analysts have posted an EPS consensus of -$0.09 and sales of $63.97m. Company sales guidance comes between $63.8m and $64.2m. The company beat analyst estimates in Q2.

The SEMRush share price is down close to -40% this year, although it's remained relatively flat since March. SEMR has a $1.7bn market cap and price-to-book value of 7.8.

The software it provides for keyword research and search engine optimization is critical to many online businesses. It also provides data insights into public search trends, which help enterprises plan and alter their marketing and operational efforts. 

Furthermore, insider ownership is high as the CEO owns nearly 39% of the company, and co-founder Dmitry Melnikov owns 15.6%. This aligns their interests with shareholders and a desire to succeed.

The company is not yet profitable and inflationary pressures are a concern. Investors will be looking to the earnings call for an update on customer acquisition plans, the road to profitability and margin pressures.

Thunderbird Entertainment Group (CVE: TBRD)

Canada's Thunderbird Entertainment Group (TSXV: TBRD), which hosts Heavy Rescue: 401 and Atomic Cartoons, among others, will report earnings on Thursday, November 17. FactSet analyst consensus pegs EPS at $0.01 and sales at $33.75m.

The TBRD share price is down 25% year-to-date. Houston investment fund Voss owns close to a 13.5% stake in TBRD and is pushing the group to consider a sale.

Last week Voss nominated a new board of directors, putting forward six names.

In a statement, it said:

We are disappointed by the current board’s strategic direction, as well as its apparent lack of urgency to create value and unresponsiveness to shareholder concerns,

TBRD has a P/E of 46 and a forward P/E of 19. It does not offer a dividend. Sales have been rising Y/Y since 2019, but 2022 earnings are expected to be lower than 2021. The company is experiencing margin pressures.

Hillenbrand (NYSE: HI)

Global industrial company Hillenbrand (NYSE: HI) operates in multiple industries, including funeral services, bulk materials handling, injection molding, screening and more. HI is due to report its Q4 and full-year earnings on November 16.

Investors will look for signs of a slowdown in its short-cycle businesses, stability in its order pipelines and any sign of delayed investment. They'll also want to see resilience in demand and a resolution to supply chain disruption. 

Hillenbrand operates in over 40 countries with over 10,000 associates. The HI share price is down -10.3% YTD. It has a P/E of 16 and offers a 1.9% dividend yield. 

M&A is a core part of its growth strategy, and it recently completed the acquisition of Linxis for 596.2m Euros. It also acquired Herbold Meckesheim, a company located in Germany, which significantly enhances its product offering in recycling systems to the post-industrial and post-consumer space.

The company is headquartered in Batesville, Indiana. It reported almost $3bn in revenue, split across two industrial segments and one death care segment.

Gap (NYSE: GPS)

Gap (NYSE: GPS) will report its Q3 earnings results on November 17. FactSet analyst estimates peg EPS consensus at $0 and sales at $3.8bn. In Q2, actual EPS and sales beat analyst estimates.

The company recently took a hit after ending its partnership with Kanye West (Ye) and removing all Yeezy stock from its shelves.

But in more optimistic news, the share price responded positively as Gap announced its plans to sell a selection of its apparel on Amazon (NASDAQ: AMZN) in the US and Canada. GPS has entered a collaboration with Amazon's fashion division to launch a clothing collection and a collection of nursery furniture and baby gear. Gap will have a dedicated brand store on Amazon's website.

Gap also sold its business in Greater China to Baozun for $40m. Baozun will operate Gap's in-market site and stores under a franchise agreement.

GPS stock is down 33% YTD. It has a forward P/E of 24.8 and offers a shareholder dividend of 4.9%.

From the upcoming earnings call, investors will be keen to hear an update on the effect of dropping Kanye West, as will Foot Locker shareholders.

If you enjoyed our earnings preview, why not read our IPO coverage?

Important Notice And Disclaimer

This article does not provide any financial advice and is not a recommendation to deal in any securities or product. Investments may fall in value and an investor may lose some or all of their investment. Past performance is not an indicator of future performance.