Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

Castle Brands (ROX) Q3 Earnings Break Even, Revenues Grow

Published 02/08/2018, 09:09 PM
Updated 07/09/2023, 06:31 AM

Castle Brands Inc.’s (NYSE:ROX) earnings broke even in the third quarter of fiscal 2018, in line with the Zacks Consensus Estimate and the year-ago figure. This premium branded spirit company delivered improved results, courtesy of its new fill whiskey programs and opportunistic purchases of aged whiskey that led to substantial reserves of aged bourbon and continued strong growth of its Jefferson's brand.

Revenues & EBITDA

The company’s quarterly revenues of $24.1 million surpassed the Zacks Consensus Estimate of $20.5 million. Revenues also improved 31.5% year over year. This upside was driven by solid improvement in the company’s U.S. sales growth of Jefferson's whiskeys, Irish whiskeys and Goslings Stormy Ginger Beer.

The company’s gross profit also increased 26.2% from the prior-year quarter to $9.7 million.

Adjusted EBITDA in the fiscal third quarter jumped 49% year over year to $2.3 million.

First Nine Months of Fiscal 2018 Highlights

The company’s sales in the period rose 20.4% to $65.8 million. Whiskey revenues grew 28.9% buoyed by solid contribution from Jefferson's bourbons and Irish whiskies, and the addition of the Arran scotch whiskey portfolio.

Gosling’s Stormy Ginger Beer case sales surged 34.2% year over year to approximately 1,342,000 cases in the period.

Adjusted EBITDA in the period advanced 61.1% from the year-ago quarter to $5 million. Castle Brands expects the positive trend of increasing sales and improving financial performance to continue over the balance of the fiscal year and beyond.

Stock Price Movement

Shares of Castle Brands have gained 44.6% in a year, outperforming 13.8% growth of the industry. Earnings estimates have remained stable in the last seven days.

Zacks Rank & Key Picks

Castle Brands has a Zacks Rank #3 (Hold).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

A few better-ranked stocks in the industry are The Boston Beer Company, Inc. (NYSE:SAM) , Constellation Brands Inc. (NYSE:STZ) and Brown Forman (NYSE:BFb) Corporation BF.B.

Boston Beer, a Zacks Rank #1 stock, has a solid earnings surprise history, beating the consensus mark in each of the trailing four quarters with an average positive surprise of 63.35%. Its current-year earnings estimates have moved 13.8% upward in the last 60 days.

Constellation Brands, a Zacks Rank # 2 (Buy) company, has an expected earnings growth rate of 26.2% for fiscal 2018.

Brown Forman, also a Zacks Rank #2 stock, is expected to witness 16.3% rise in earnings this year.

Castle Brands, Inc. Price, Consensus and EPS Surprise

Castle Brands, Inc. Price, Consensus and EPS Surprise | Castle Brands, Inc. Quote

The Hottest Tech Mega-Trend of All

Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early.

See Zacks' 3 Best Stocks to Play This Trend >>

Brown Forman Corporation (BF.B): Free Stock Analysis Report

Constellation Brands Inc (STZ): Free Stock Analysis Report

Castle Brands, Inc. (ROX): Free Stock Analysis Report

Boston Beer Company, Inc. (The) (SAM): Free Stock Analysis Report

Original post

Zacks Investment Research

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.