Treasury Wine Estates earnings preview: is the worst over yet?
For the past two years, Treasury Wine Estates has done its best to retain its position in the absence of the Chinese market.
Treasury Wine Estates (ASX: TWE) release date:
Treasury Wine Estates is expected to release its earnings report on Thursday, August 18, 2022.
Treasury Wine Estates earnings expectation:
- EPS: 0.442 (13.6% yearly decline)
- DPS: 0.29 (3.5% yearly increase)
Treasury Wine Estates earnings key watch:
Treasury Wine Estates' earnings report for the first half of FY22 was bittersweet with the company reporting the EBITS declined 7% to $262.4 million while a 28% increase (excluding Australian COO sales to Mainland China) provided some comfort to shareholders.
In 2020, the Australian government demanded an international inquiry into the origins of COVID-19. This ridicule enraged the Chinese government and they swiftly placed punitive tariffs on specific Australian imports. Unfortunately for Treasury Wines, their premium product line was on the tariff list, and China was the company's largest consumer.
Since then, its stock price dived from $18 in early 2020 to around $8 in November 2020.
For the past two years, Treasury’s management has done its best to pivot away from the world’s largest country by diversifying its markets. This has come with the acquisition of US business Frank Family Vineyards in late 2021, a key step to create a new pillar of growth for the US business and more importantly, accelerate expansion outside of China.
The strategic moves, driven by the improved global distribution network for Penfolds, have ignited the hope that the luxury and premium brand will manage to retain its strong position in the absence of the Chinese market.
During the 1H22 interim result announcement, TWE’s Chief Executive Officer, Tim Ford commented, 'We have shifted our focus from a mindset of "recovery and restructuring" to one of "growth and innovation." '
It is no doubt a positive sign that a new era is beginning for the company.
Over the last three years, earnings at TWE have declined by an average of -6.53% annually. This is worse than the industry average growth of 6.49%. For fiscal years 2022 and 2023, analysts are estimating that average annual growth will increase by 2.13%.
Technical analysis
The price of Treasury Wine has recently taken a breather from its peak at the level of $12.5 which is poised to be a massive resistance zone for the price. However, the price remains glued to the ascending trajectory with imminent support at $12.1, only an inch away.
Treasury Wine Estates daily chart
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Start trading forex today
Find opportunity on the world’s most-traded – and most-volatile – financial market.
- Trade spreads from just 0.6 points on EUR/USD
- Analyse with clear, fast charts
- Speculate wherever you are with our intuitive mobile apps
See an FX opportunity?
Try a risk-free trade in your demo account, and see whether you’re onto something.
- Log in to your demo
- Take your position
- See whether your hunch pays off
See an FX opportunity?
Don’t miss your chance – upgrade to a live account to take advantage.
- Get spreads from just 0.6 points on popular pairs
- Analyse and deal seamlessly on fast, intuitive charts
- See and react to breaking news in-platform
See an FX opportunity?
Don’t miss your chance. Log in to take your position.
Live prices on most popular markets
- Equities
- Indices
- Forex
- Commodities
Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
