Premium branded spirits company, Castle Brands Inc. (ROX - Free Report) , broke even in the second quarter of fiscal 2017, in line with the Zacks Consensus Estimate. However, revenues surpassed the consensus mark on strong performance by the core brands.
Castle Brands’ bottom line reached the breakeven point in the quarter compared with a loss of 1 cent a year ago. Solid growth of the company’s more profitable brands, Jefferson's and Irish whiskeys, resulted in strong revenue growth and even greater growth in gross profit.
The company’s quarterly revenues of $19.63 million exceeded the Zacks Consensus Estimate of $18.90 million by 3.9%. Revenues also reflected a 5.9% year-over-year rise on U.S. sales growth of Jefferson's bourbons and Goslings Stormy Ginger Beer.
Adjusted EBITDA of $1 million in the second quarter of fiscal 2017 improved from $0.9 million in the prior-year quarter on the back of solid revenues.
During the fiscal second quarter, Castle Brands’ additional purchases of aged bourbon reserves, coupled with the continuation of two long-term new fill programs has supported continued sales growth of its Jefferson's bourbon portfolio. Castle Brands intends to expand its wine finishes program as well as introduce other new Jefferson's expressions over the remainder of fiscal 2017.
The company has also boosted its Irish whiskey offerings and expanded barrel program for Knappogue Castle Whiskey. Again, ginger beer cocktails, including Goslings' trademarked "Dark 'n Stormy" cocktail has been an important growth driver of Goslings "Stormy Ginger Beer". Castle Brands has been boosting the popularity of the Goslings brand through its sponsorship of the 35th America's Cup.
Castle Brands has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Constellation Brands Inc.’s (STZ - Free Report) adjusted earnings for the second quarter of fiscal 2017 jumped 13.5% year over year to $1.77 per share, outpacing the Zacks Consensus Estimate of $1.66.
Global brewer, Molson Coors Brewing Company’s (TAP - Free Report) adjusted earnings of $1.03 per share beat the Zacks Consensus Estimate of $1.01 by 2% but plunged 26.4% from the prior-year earnings of $1.40 per share.
Boston Beer Co. Inc.’s (SAM - Free Report) third-quarter earnings per share of $2.48 missed the Zacks Consensus Estimate of $2.54 and declined nearly 13% year over year.
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