By Stuart Condie
SYDNEY--Treasury Wine Estates shares are on course for their largest one-day fall in two years after the Australian producer moderated its annual earnings guidance.
The stock was down 6.1% in afternoon trade Thursday, wiping about 556 million Australian dollars, or about US$350 million, from Treasury's market capitalization. Analysts said that Treasury's so-called premium and U.S. luxury portfolios had underperformed in the December half.
The company, which is best known globally for its Penfolds brand, hopes the creation of a separate luxury division will help lift performance. On Thursday, it said it had completed the integration of California luxury producer Daou Vineyards, which it acquired for up to US$1 billion in 2023.
"We are pleased to hear that integration work around Daou has now been completed, and the company has room to grow with distributors in the U.S. which have faced challenges from weaker spirits sales," said Citi analyst Sam Teeger, who rates the stock a buy.
Shares were recently at A$10.47, on track for their lowest close since Jan. 29.
Write to Stuart Condie at stuart.condie@wsj.com
(END) Dow Jones Newswires
February 12, 2025 23:12 ET (04:12 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
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