The Duckhorn Portfolio Inc. (NASDAQ: NAPA) will release its earnings on Monday, October 4, 2021, after market close.
What to look for
The company expects to build on its Q3 results and track record to deliver profitable and sustained growth following the successful IPO. When the company released Q3 results, CEO Alex Ryan said that the performance during the quarter demonstrated by top-line growth demonstrated the ability of the company to execute on its differentiated plan with tremendous runway for growth expected in the luxury wine business.
Earnings: Stockearning’s Estimated EPS is expected to top Q3 earnings of $0.08 per share. A year ago, the company reported a net income of $11.6 million or £$0.11 per share. Adjusted net income in Q3 2021 was $0.17 per share compared to $10.15 a year ago. Over the past 12 quarters, the company has topped estimates once (100%) and missed zero times (0%).
Revenue: In Q3, the company had revenue of $90.4 million, a 31.6% YoY increase. Net sales growth is attributable to a 41% growth in volume partially offset by a 9.4% negative mix contribution, with the leading Decoy and Duckhorn brands outpacing the rest of the portfolio.
Stock movement: Since the last earnings release, the company's stock has gained 16% from $18.93 to the previous closing price of $22.02. Following the earnings release, the stock price has been Up once in the past quarter. So, historical price reaction suggests a 100% probability for the stock price to go UP when the company releases Q4 earnings.
What analysts are saying
Citi analyst Wendy Nicholson raised her price target in Duckhorn Portfolio from $22 to $25 and maintained a “Buy” rating in the shares following the release of Q3 results. The company delivered better than anticipated revenue growth as well as operating margins.
Also, ISI analyst Robert Otttenstein commenced coverage on the stock with a "Buy" rating and a target price of $22. In a note to investors, Ottenstien indicated that the Duckhorn company is “synonymous with American fine wine” with “the potential to gather the luster of an iconic luxury brand" based on which an enduring company can be built. In addition, the analyst said that Duckhorn is among the blue-chip growth names in the rarified company of Estee lauder, Boston Beer, and Monster Beverage.
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