Carvana’s fourth-quarter revenue is forecast at $3.05 billion, down 10% sequentially and 18.7% lower year over year. The company is expected to post an adjusted loss per share of $2.37, better than the $2.67 loss per share in the prior quarter but much worse than the year-ago per-share loss of $1.02. For the full 2022 fiscal year, estimates call for an adjusted loss per share of $10.12, much worse than the year-ago loss of $1.63 per share. Full-year sales are forecast at $13.84 billion, up 8% year over year.
Carvana is not expected to post a profit in 2022, 2023 or 2024. The company’s enterprise value to sales multiple for 2022 and 2023 is 0.6, dropping to 0.5 in 2024. The stock’s 52-week trading range is $3.55 to $156.68. The company does not pay a dividend. The total shareholder return for the past year was negative 92.04%.
Warner Bros. Discovery
Media company Warner Bros. Discovery Inc. (NASDAQ: WBD) was created following the April 2022 merger of Discovery with AT&T’s WarnerMedia. The stock posted a 52-week low in late December and has managed to rise by nearly 60% from that trough. Likely that is due to ruthless cost-cutting by CEO David Zaslav, achieved primarily through job cuts at both the studio and at Warner-owned CNN. All we can say is that the company better not miss adjusted earnings estimates.
Of 26 analysts covering the stock, there are 10 Hold ratings and 15 Buy or Strong Buy ratings. At a share price of around $15.00, the implied gain based on a median price target of $20.00 is 25%. At the high price target of $36.00, the implied gain is 140%.
Fourth-quarter revenue is forecast at $11.23 billion, which would up 14.4% sequentially. Because this is the new company’s first year, comparable data for the prior year is not available. Analysts are looking for an adjusted loss of $0.24 per share, slightly worse than the prior quarter’s loss of $0.22 per share. The estimates for the full year call for a loss per share of $1.98 on sales of $43.35 billion.
Warner Bros. Discovery stock is expected to post a net loss in 2022 and 2023. The stock trades at a multiple of 20.4 times estimated 2024 earnings of $0.50 per share. The stock’s post-merger range is $8.82 to $30.20. The company does not pay a dividend, and the total shareholder return for the past year is negative 46.8%.
Originally published at 24/7 Wall St.
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