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Vintage Wine Estates Shares Plummet On Gloomy FY23 Outlook

Benzinga · 09/14/2022 08:53
  • Vintage Wine Estates Inc (NASDAQ:VWE) reported fourth-quarter FY22 sales growth of 32% year-on-year to $75.54 million, beating the consensus of $74.24 million.
  • Segment Revenue: DTC climbed 29% to $23.1 million, B2B grew 55% to $30.6 million and Wholesale increased 23% to $21.6 million.
  • The gross profit for the quarter was $38,000 compared to $11.1 million last year.
  • Selling, general and administrative expenses increased 60.5% to $34.6 million.
  • The operating loss for the quarter widened to $(27.6) million.
  • The company held $50.3 million in cash and equivalents as of June 30, 2022.
  • Adjusted EPS of $0.17 topped the Street view of $0.14.
  • Telsey Advisory Group analyst Joseph Feldman downgraded the shares of Vintage to Market Perform from Outperform and also lowered the price target to $6 from $12.
  • Outlook: Vintage Wine sees FY23 sales of $300 million - $310 million versus the consensus of $330.37 million.
  • It expects FY23 adjusted EBITDA of $55 million - $65 million.
  • Price action: VWE shares are trading lower by 28.93% at $3.93 in premarket on the last check Wednesday.