New call-to-action


See all



Treasury Wine Estates Tumbles Over 24% After Downgrading Earnings Guidance

Tim Montague-Jones

Tim Montague-Jones has over 20 year investment management experience working in the financial markets. Previous experience includes a ten year stint at Morningstar as a Senior Equity Analyst/Portfolio Manager, founding the Morningstar Growth Portfolio and a founding member of their Investment Committee. Tim was also a Senior Equity Analyst for Macquarie Group and a member of the winning team to obtain the 2016 LONSEC Fund Manager of the Year award.

Treasury Wine Estates (ASX: TWE) has plummeted over 24% from $16.68 per share to $12.62, making it the lowest price its traded at since August 2017. The fall comes after the winemaker has downgraded its earnings guidance on the back of aggressive discounting in its US division, leadership changes and the rise of private labels. The winemaker previously forecasted 15% earnings growth (estimated earnings of $250 million) but has revised this number to a mere 5% (now estimating earnings to be $229 million), citing ‘challenging US market conditions’ as the primary driver.



Treasury Wine Estates (ASX: TWE) has come off over 24%, trading at its lowest price since August 2017. This comes after the winemaker released an earnings guidance downgrade, from 15% growth to 5%. (Credit: Decanter.com)


Treasury Wine Estates is a global winemaking and distribution business with headquarters in Sydney and Melbourne, founded in 2011. It was formerly the wine division of international brewing company ‘Foster’s Group’. The company floated in 2011 and saw capital growth of over 420% before today’s fall.

TWE’s chief executive Michael Clarke said that due to a rise of private label and aggressive market pricing in the US, TWE ‘walked away’ from just under 500,000 cases of commercial volume. Mr. Clarke expects a similar second half, with strong growth to return in the 20201 financial year. TWE is a firm believer that the aggressive pricing tactics of competitors are unsustainable. Rather, TWE is focused on ‘staying on their journey of sustainable profit growth… at a slightly lower rate than previously expected’.




This article has been prepared by the Australian Stock Report Pty Ltd (AFSL: 301 682. ABN: 94 106 863 978)

(“ASR”). ASR is part of Amalgamated Australian Investment Group Limited (AAIG) (ABN: 81 140 208 288 Level 13, 130 Pitt Street, Sydney NSW 2000).

This article is provided for informational purpose only and does not purport to contain all matters relevant to any particular investment or financial instrument. Any market commentary in this communication is not intended to constitute “research” as defined by applicable regulations. Whilst information published on or accessed via this website is believed to be reliable, as far as permitted by law, we make no representations as to its ongoing availability, accuracy or completeness. Any quotes or prices used herein are current at the time of preparation. This document and its contents are proprietary information and products of our firm and may not be reproduced or otherwise disseminated in whole or in part without our written consent unless required to by judicial or administrative proceeding. The ultimate decision to proceed with any transaction rests solely with you. We are not acting as your advisor in relation to any information contained herein. Any projections are estimates only and may not be realised in the future.

ASR has no position in any of the stocks mentioned.

New call-to-action