EPS of $0.13 beat estimates of $0.08 and revenues of $100.18M missed estimates of $103.3M. Gross margins increased from 38.8% for the same period in the prior year to 41.2%, Its year-to-date sales remained flat at $200.7M, and management is optimistic about its future growth, focusing on established trade channels, market share improvements, and premium product sales. Management noted they are taking proactive measures to sustain EBITDA growth, including importing bulk wines, and optimizing logistics. This quarter showed some improvement in its financials, and with a change in the board and CEO, we feel that these might be positive developments for the company.
Overall, the stock price reaction is so far positive on its recent results and management change, although we would like to see continued positive momentum in its earnings going forward. We do not see it as a need-to-own stock, although a sustained trend in positive earnings can shift our opinion.