Vintage Wine Estates stock plummets toward record low after surprise loss, downbeat outlook

Shares of Vintage Wine Estates Inc. plummeted 40.1% in afternoon trading Wednesday toward a record low, after the winery, with brands including Layer Cake, Clos Pegase and Bar Dog, reported a surprise fiscal fourth-quarter loss and provided a downbeat full-year revenue outlook. The company reported late Tuesday a net loss for the quarter to June 30 that widened to $14.7 million, or 24 cents a share, from $6.1 million, or 18 cents a share, in the year-ago period, as the number of shares outstanding nearly doubled to 60.4 million from 33.1 million. The FactSet consensus was for a profit of 9 cents a share. Revenue grew 32.4% to $75.5 million, above the FactSet consensus of $74.2 million, while cost of revenue jumped 64.4%. For fiscal 2023, the company said it expects revenue of $300 million to $310 million; the FactSet consensus as of the end of August was $330.4 million. The stock, which was the biggest loser on major U.S. exchanges, has tumbled 62.4% over the past three months, while shares of fellow wine producer Duckhorn Portfolio Inc. have dropped 15.0% and the S&P 500 has gained 5.3%.

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