Duckhorn (NAPA) Q2 Earnings Report Preview: What To Look For

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Duckhorn (NAPA) Q2 Earnings Report Preview: What To Look For

Wine company The Duckhorn Portfolio (NYSE:NAPA) will be reporting earnings tomorrow after market hours. Here’s what investors should know.

Duckhorn met analysts’ revenue expectations last quarter, reporting revenues of $92.53 million, up 1.4% year on year. It was a slower quarter for the company, with a miss of analysts’ earnings estimates and underwhelming earnings guidance for the full year.

Is Duckhorn a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Duckhorn’s revenue to grow 4.7% year on year to $104.8 million, slowing from the 28.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.10 per share.

Duckhorn Total Revenue
Duckhorn Total Revenue

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Duckhorn has missed Wall Street’s revenue estimates twice over the last two years.

Looking at Duckhorn’s peers in the consumer staples segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Mission Produce delivered year-on-year revenue growth of 23.9%, beating analysts’ expectations by 40.3%, and Hain Celestial reported a revenue decline of 6.5%, in line with consensus estimates. Mission Produce traded up 21.4% following the results while Hain Celestial was also up 20.9%.

Read our full analysis of Mission Produce’s results here and Hain Celestial’s results here.

Investors in the consumer staples segment have had steady hands going into earnings, with share prices flat over the last month. Duckhorn is down 10.5% during the same time and is heading into earnings with an average analyst price target of $9 (compared to the current share price of $5.47).

When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right. Luckily, we’ve found one, a low-priced stock that is gushing free cash flow AND buying back shares. Click here to claim your Special Free Report on a fallen angel growth story that is already recovering from a setback.

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