The Treasury Wine Estates Ltd (ASX: TWE) share price has popped 6% higher this morning after reassuring the market yesterday afternoon.
Treasury Wines is a world-leader in winemaking and brand marketing with some 13,000 hectares of vineyards available and around 3,400 employees across 70 countries. Some of its more popular brands include Lindeman’s, Penfolds, Pepperjack, Rosemount, Yellowglen and Wolf Blass.
Why Treasury Wine Shares Popped 6% Higher
Yesterday the Treasury Wine share price fell around 5%. One of Treasury Wine’s main competitors, Constellation Brands Inc (NYSE: STZ), revealed a profit forecast for its 2019 financial year that was below expectations.
Understandably, investors were worried that Treasury Wine might also have a disappointing 2019.
Now it seems investors are quickly getting over their concerns after Treasury Wine’s management said they are very happy with the trading performance across all operating regions.
The alcohol business confirmed its audited results will be released in mid-February, but it was pleased to reveal some of the numbers it expects to report.
EBIT for the six months to December 2018 will be above the consensus estimates of $332 million, in fact, it will be somewhere in a range of $335 million to $340 million. Click here to learn what EBIT means.
The company also said that it’s sticking with full guidance of 25% EBIT growth.
With the Treasury Wine share price down nearly 15% and confirming solid growth for the year, I can see why investors are buying its shares today.
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Disclaimer: Any information contained in this article is limited to general financial/investment advice only. The information has not taken into account your specific needs, goals or objectives, so please consider consulting a licenced and trusted adviser before acting on the information. Please read The Rask Group’s Financial Services Guide (FSG) for more information. This article is authorised by Owen Raszkiewicz of The Rask Group, which is a corporate authorised representative No. 1264179 of Strawman Pty Ltd (ACN: 610 908 211) (AFSL: 501 223).