The used car dealership sells, services and finances purchases at some 220 stores around the United States. Sales reached a pandemic-driven peak in the June quarter of last year and have declined in the two quarters since then as buyer sentiment is weak due both to pricier used cars and high interest rates on car loans. Cox Automotive reported that used car loans came with an average 11.3% interest rate in March, p from 7.7% in March of last year.
Of 20 analysts covering the stock, nine have a Buy or Strong Buy rating and another eight have Hold ratings. At a share price of around $62.40, the upside potential based on a median price target of $65.00 is 4%. At the high price target of $141.00, the upside potential is 243%.
Fourth-quarter revenue is forecast at $6.1 billion, down 6.3% sequentially and by 20.7% year over year. Adjusted EPS are expected to come in at $0.24, flat sequentially and down 75.5% year over year. For the full 2023 fiscal year that ended in February, CarMax is expected to report EPS of $2.85, down 58.6%, on sales of $30.05 billion, down 5.8%.
CarMax stock trades at 21.9 times expected 2023 EPS, 21.9 times estimated 2024 earnings of $2.85 and 15.2 times estimated 2025 earnings of $4.10 per share. CarMax’s 52-week range is $52.10 to $106.24. CarMax does not pay a dividend, and total shareholder return over the past 12 months is negative 37.45%.
Tilray
Shares of cannabis grower Tilray Inc. (NASDAQ: TLRY) have dropped by more than 65% over the past year. Tilray reports quarterly results after markets close on Monday.
Early last month, the company settled a shareholder lawsuit for $46.4 million, including attorney’s fees. The suit charged that the company had made false statements related to its business and the value of a deal it had made with a brand company. Revenue also has been declining, but the company has strong alcoholic beverage brands in the United States that could help the company’s cannabis sales in the country if weed is ever legalized.
Of 18 analysts covering the stock, 14 have a Hold rating and four have Buy ratings. At a share price of around $2.40, the upside potential to the median price target of $3.38 is 40.8%. At the high price target of $9.00, the upside potential is 275%.
For Tilray’s third quarter of fiscal 2023, analysts are looking for revenue of $150.13 million, up 4.2% sequentially but down 1.1% year over year. Analysts expect the company to post a loss per share of $0.06, equal to its prior quarter loss, but worse than last year’s third-quarter EPS of $0.07. For the full 2023 fiscal year ending in May, analysts forecast a loss per share of $0.28, compared to last year’s loss per share of $0.31. Full-year sales are expected to slip by 3.3% to $607.62 million.
Tilray is not expected to post a profit in 2023, 2024 or 2025. The company’s enterprise value to sales multiple is 2.8 times in 2023, 2.5 times in 2024 and 2.2 times in 2025. The stock’s 52-week range is $2.28 to $8.15. Tilray does not pay a dividend and the total return to shareholders last year was negative 65.29%.
Originally published at 24/7 Wall St.
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