RBC Capital analysts provided their outlook on The Duckhorn Portfolio, Inc. (NYSE:NAPA) ahead of the company’s Q1/23 earnings, scheduled to be announced on June 8.
The analysts estimate Q3 revenue of $90 million (in line with the Street estimate), adjusted EBITDA of $28 million (vs. Street’s $29 million), and adjusted EPS of $0.12 (vs. Street’s $0.13).
According to the firm, Q3 will likely play out as a muted quarter for the company as (1) Kosta Browne Appellation series shipments shift out of Q3 and into Q4, leading to topline pressure and margin contraction, and (2) RBC’s channel work indicates mounting category pressure coupled with increasing trade inventory levels.
While the company is gaining a significant share, the analysts see some potential risk to the company’s hockey stick assumption in Q4 due to deteriorating category dynamics.