SNDL Earnings Prediction
The chart below shows how SNDL performed 10 days before and after its earnings report, based on data from the past quarters. Typically, SNDL sees a -14.40% change in stock price 10 days leading up to the earnings, and a +4.84% change 10 days following the report. On the earnings day itself, the stock moves by +3.24%. This data can give you a slight idea of what to expect for the next quarter's release.
SNDL Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
236.89M
-0.30%
3.84%
Gross Margin
20.93%
50.47%
6.95%
Operating Margin
-3.80%
-62.19%
-26.64%
Net Margin
-8.16%
-11.21%
274.31%
EPS
-0.07
-12.50%
250.00%
No Data Available
SNDL Earnings Analysis
Sundial Growers Inc. Common Shares Corporation (SNDL.O) Earnings Conference Call
Positive
Record Gross Margin Achievement: 1. Record Gross Margin: SNDL achieved an all-time high gross margin of 26.6%, reflecting a substantial 610 basis points improvement year-over-year, driven by margin expansion in both Liquor retail and Cannabis operations.
Positive Free Cash Flow: 2. Positive Free Cash Flow: The company reported positive free cash flow of $9.2 million in Q3 2024, contributing to a year-to-date total that is on track to meet or exceed guidance for the full year.
Cannabis Revenue Surge: 3. Strong Revenue Growth in Cannabis: The combined Cannabis segment posted a healthy 8% revenue growth year-over-year, with Cannabis operations alone achieving a remarkable 19% growth.
Cash Reserves Expansion: 4. Increased Cash Reserves: SNDL increased its cash balances from $183 million at the end of Q2 to $263 million by the end of Q3 2024, while maintaining zero outstanding debt.
Cost Management Success: 5. Successful Cost Management Initiatives: The company implemented a restructuring program that is expected to yield annualized savings of over $20 million, alongside achieving $5 million in overhead savings in Q3 2024.
Negative
Net Revenue Decline: 1. Decline in Net Revenue: Net revenue for Q3 2024 was $236.9 million, reflecting a marginal decline compared to the prior year, primarily driven by a $7.2 million or 4.8% decrease in the Liquor retail segment.
Negative Operating Income Decline: 2. Negative Adjusted Operating Income: Adjusted operating income was negative $16.6 million, a slight decrease from the prior year, largely due to a $13.4 million unfavorable fair value adjustment from equity accounted investees.
Declining Free Cash Flow: 3. Negative Year-to-Date Free Cash Flow: Year-to-date free cash flow stood at negative $2.8 million, indicating a decline in cash generation despite a positive free cash flow of $9.2 million in Q3 2024.
Liquor Retail Revenue Decline: 4. Decline in Liquor Retail Revenue: The Liquor retail segment experienced a revenue decline of $7.2 million or 4.8% compared to the prior year, highlighting ongoing market softness.
Cannabis Retail Margin Decline: 5. Reduction in Cannabis Retail Gross Margin: The gross margin for Cannabis Retail decreased by 100 basis points to 25.5% compared to the same period last year, attributed to strategic pricing decisions.
SNDL FAQs
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SNDL Earning Call Sentiment
SNDL, Inc. (SNDL) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
SNDL.O
-1.23%Positive
The earnings call presents a mixed but overall positive outlook. Financial performance shows growth in cannabis revenue and gross margin improvements, despite challenges in the liquor segment. The Q&A highlights management's proactive strategies, including acquisitions and margin expansion plans, which are well-received. Risks like regulatory issues and supply chain challenges exist but are countered by strategic initiatives. The active share repurchase program further supports a positive sentiment. Adjustments for positive factors like margin improvement and share repurchase outweigh the negatives, suggesting a 2% to 8% stock price increase.
