After finishing almost 5% lower yesterday, Treasury Wine Estates Limited [ASX:TWE] has rebounded 4.037% today, or $0.575, and is currently trading at $14.82 per share.
What’s happened to Treasury Wine Estates’ share price?
Investors were quick to sell TWE yesterday morning after one of its rivals had released a disappointing trading update in the US.
Constellation Brands’ share price fell 12% after news of weak third quarter wine sales reached investors.
Investors appeared to believe TWE may also fall short of FY19 expectations, which put the share price into a nosedive.
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After trading closed yesterday, Treasury Wine Estates sought to alleviate any concerns about the company’s underperformance. In the announcement, TWC made assurances it was happy with trading performances across its operating regions and expects earnings above consensus estimates.
The current consensus EBITS is $332 million, with the company now forecasting EBITS within the range of $335 million to $340 million. TWE has given guidance of approximately 25% reported EBITS growth for fiscal 2019.
What’s next for Treasury Wine Estates
With its audited results for the first six months of fiscal 2019 due on 14 February 2019, TWE is on track to report an increase in total earnings.
However, despite the strong momentum in the wine market exhibited in China, Citibank suspects that the company’s sales will slow beyond FY19.
More to come.
For Money Morning
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