Wine company The Duckhorn Portfolio (NYSE:NAPA) will be reporting results tomorrow after the bell. Here's what investors should know.
Last quarter Duckhorn reported revenues of $100.1 million, up 28.3% year on year, in line with analyst expectations. It was a mixed quarter for the company, with a decent beat of analysts' earnings estimates but full-year revenue guidance missing analysts' expectations.
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This quarter analysts are expecting Duckhorn's revenue to decline 4.3% year on year to $103.6 million, a deceleration on the 3.8% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.16 per share.
Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 4.4%.
Looking at Duckhorn's peers in the beverages and alcohol segment, some of them have already reported Q1 earnings results, giving us a hint of what we can expect. Vita Coco delivered top-line growth of 11.3% year on year, missing analyst estimates by 1% and Anheuser-Busch reported revenues up 3.2% year on year, missing analyst estimates by 0.9%.
There has been positive sentiment among investors in the beverages and alcohol segment, with the stocks up on average 6.6% over the last month. Duckhorn is down 1.3% during the same time, and is heading into the earnings with analyst price target of $14.7, compared to share price of $10.6.
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The author has no position in any of the stocks mentioned.