The Duckhorn Portfolio, Inc. (NAPA) Beats Q2 Earnings and Sales Estimates – Mar 8, 2023


The Duckhorn Portfolio, Inc. (NAPA Free Report) came out with quarterly earnings of $0.18 per share, beating Zacks’ consensus estimate of $0.17 per share. That compares to earnings of $0.17 per share a year ago. These figures are adjusted for one-off effects.

This quarterly report represents an earnings surprise of 5.88%. A quarter ago, this company was expected to report earnings of $0.14 per share when it actually posted earnings of $0.18, which delivered a surprise of 28.57%.

In the past four quarters, the company has beaten consensus estimates for earnings per share three times.

The Duckhorn Portfolio, Inc., part of the alcohol division of Zacks Beverages, reported sales of $103.49 million for the quarter ended January 2023, beating Zacks’ consensus estimate by 1%. This compares to annual sales of $98.74 million. The company has beaten consensus estimates for revenue four times in the last four quarters.

The sustainability of the immediate price action of the stock based on recently released numbers and future earnings expectations will depend primarily on management’s comments on the earnings release.

Duckhorn Portfolio, Inc. shares are down about 10.9% year-to-date, while the S&P 500 is up 3.8%.

What’s next for The Duckhorn Portfolio, Inc.

While The Duckhorn Portfolio, Inc. has underperformed the market so far this year, the question for investors is: where is the stock going?

There are no easy answers to this key question, but one reliable metric that can help investors answer this question is the company’s earnings prospects. This includes not only the current consensus earnings expectations for the quarter(s) ahead, but also how those expectations have changed recently.

Empirical research shows a strong correlation between short-term stock movements and trends in earnings estimate revisions. Investors can track such revisions themselves or rely on a trusted rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Prior to this earnings release, the trend in estimate revisions for The Duckhorn Portfolio, Inc. was mixed. While the magnitude and direction of the estimate revisions could change following the company’s just-released earnings report, the current status puts the stock at a Zacks #3 rank (Hold). The shares are therefore expected to perform in line with the market in the near future. You can see the full list of today’s Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how the estimates for the coming quarters and the current fiscal year change over the coming days. Current consensus EPS estimate is $0.12 on revenue of $89.88 million for the upcoming quarter and $0.61 on revenue of $401.08 million for the current fiscal year.

Investors should keep in mind that the outlook for the industry can also have a material impact on the stock’s performance. In terms of Zacks industry ranking, Beverages – Alcohol is currently in the top 24% of Zacks’ 250+ industries. Our research shows that the top 50% of industries evaluated by Zacks outperform the bottom 50% by a factor of more than 2 to 1.

Another stock from the same industry, Constellation Brands (STZ Free Report) is yet to report results for the quarter ended February 2023. The results are expected to be released on April 6th.

This wine, spirits and beer company is expected to report quarterly earnings of $1.91 per share in its upcoming report, a -19.4% year-over-year change. Consensus EPS estimate for the quarter has been revised down 0.1% over the last 30 days to current levels.

Constellation Brands revenue is expected to be $2.03 billion, down 3.4% from the year-ago quarter.

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