Is This Luxury Wine Company Losing Its Bouquet?
One of the few publicly traded wine companies, The Duckhorn Portfolio (NYSE: NAPA) is just seven months out from its March IPO. It served up a tasty vintage of revenue and earnings gains with its early October fourth-quarter and full-year fiscal 2021 report, winning a stock market boost from pleased investors. However, the market registered a strongly negative response to its announced sale of 12 million shares of stock just a week later, slashing value more than 6% in a few hours. This raises the question of how sustainable its current value is -- with important metrics likely supporting a bullish thesis in spite of temporary investor negativity.
When Duckhorn popped the cork on its Q4 earnings on Oct. 4, it came in well ahead of analyst consensus expectations. The results delivered positive surprises at both the top and bottom lines. Its $70.89 million in revenue beat Wall Street's expectations by 17.8%, while its adjusted earnings per share of $0.08 exceeded the average forecast by 300%.
Both quarterly and full fiscal year results also topped the previous fiscal year's performance solidly. Fiscal Q4 2021 revenue rose 35.7% year over year, while adjusted net income of $9.2 million was 24.3% higher than fiscal Q4 2020's figure. The full fiscal year, ending on July 31, saw net sales grow 24.4% and adjusted net income increase 27.3%. CEO Alex Ryan remarked that the company's "brand equity, diversified omni-channel platform and highly flexible supply chain position us very well to capitalize on the heightened interest and demand for high-quality wine" and led to the strongly positive results.
Source Fool.com
