Shares of Duckhorn Portfolio Inc. (NAPA, -0.59%) experienced a decline in after-hours trading on Wednesday following the release of their quarterly earnings report, which surpassed Wall Street's expectations. In addition to the strong financial performance, the company also announced the retirement of Chief Executive Officer (CEO) Alex Ryan after an impressive tenure of 35 years with the organization.
Impressive Financial Results
Duckhorn recorded earnings of $17.8 million, or 15 cents per share, in the fiscal fourth quarter. This marks a significant increase from the prior-year quarter's earnings of $5.4 million, or 5 cents per share. Adjusted for one-time items, the company's earnings per share stood at 15 cents, exceeding expectations of 13 cents according to FactSet. Furthermore, sales saw a substantial 28% rise to reach $100 million, aligning perfectly with the FactSet forecast.
Promising Future Outlook
Looking ahead to fiscal 2024, Duckhorn anticipates sales in the range of $420 million to $430 million. Additionally, they project adjusted earnings per share between 67 cents and 69 cents. These optimistic projections suggest a promising future for the company and indicate confidence in their growth potential.
New Leadership on the Horizon
Within a separate press release, Duckhorn announced the appointment of Deirdre Mahlan as interim CEO and board chair. Mahlan is acclaimed as a "veteran of the alcohol and beverage industry" and brings a wealth of experience to her new role. The company has already initiated a search for a new permanent CEO to guide them through the next phase of their evolution.
Acknowledging Ryan's Contributions
Duckhorn expressed their gratitude for Alex Ryan's invaluable service over the span of his professional career. After dedicating himself to the growth of the business, Ryan has decided to step away in order to focus on personal and family matters. However, he has offered his continued support to ensure a seamless transition for the company.
Initially, Duckhorn's stock surged by as much as 9% during the extended trading session. However, it later experienced a 1% decline at last check.