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Castle Brands (ROX) Q3 Earnings Break Even, Revenues Miss
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Premium branded spirits company Castle Brands Inc.’s earnings broke even in the third quarter of fiscal 2017, in line with the Zacks Consensus Estimate. The company had posted a loss of a penny in the year-ago quarter.
Solid growth of the company’s more profitable brands, Jefferson's and Irish whiskeys, resulted in strong revenue growth and even higher gross profits.
The company’s quarterly revenues of $18.31 million missed the Zacks Consensus Estimate of $20.74 million by 11.7%. However, revenues reflected a 6.4% year-over-year rise on U.S. sales growth of Jefferson's bourbons, the Irish whiskies and Goslings Stormy Ginger Beer.
Whiskey revenues increased 14.5% from the year-ago quarter. Goslings Stormy Ginger Beer case sales increased 42.9% to approximately 339,000 cases.
Adjusted EBITDA of $1.6 million in the third quarter of fiscal 2017 reflected a rise of 132.1%.
Castle Brands, Inc. Price, Consensus and EPS Surprise
During the fiscal third quarter, Castle Brands’ additional purchases of 1000 barrels of aged bourbon reserves, coupled with the continuation of the long-term new fill programs have supported continued sales of its Jefferson's bourbon products.
The company entered into five-year exclusive distribution agreement for The Arran Malt Single Malt Scotch Whisky and Robert Burns Single Malt Whisky and Blended Scotch Whisky in the U.S.
Castle Brands intends to expand its wine finishes program as well as introduce new Jefferson's expressions over the remainder of fiscal 2017. The company has also boosted its Irish whiskey offerings and expanded the barrel program for Knappogue Castle Whiskey.
Financials
As of Dec 31, 2016 the company has cash and cash equivalents of $0.94 million compared with $1.43 million as of Mar 31, 2016.
Constellation Brands Inc.’s (STZ - Free Report) adjusted earnings for the third quarter of fiscal 2017 jumped 38% year over year to $1.96 per share, outpacing the Zacks Consensus Estimate of $1.72.
Upcoming Peer Releases
Global brewer, Molson Coors Brewing Company’s (TAP - Free Report) is slated to release its fourth-quarter numbers on Feb 14.
Boston Beer Co. Inc.’s (SAM - Free Report) is expected to release its quarterly numbers on Feb 22.
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Castle Brands (ROX) Q3 Earnings Break Even, Revenues Miss
Premium branded spirits company Castle Brands Inc.’s earnings broke even in the third quarter of fiscal 2017, in line with the Zacks Consensus Estimate. The company had posted a loss of a penny in the year-ago quarter.
Solid growth of the company’s more profitable brands, Jefferson's and Irish whiskeys, resulted in strong revenue growth and even higher gross profits.
The company’s quarterly revenues of $18.31 million missed the Zacks Consensus Estimate of $20.74 million by 11.7%. However, revenues reflected a 6.4% year-over-year rise on U.S. sales growth of Jefferson's bourbons, the Irish whiskies and Goslings Stormy Ginger Beer.
Whiskey revenues increased 14.5% from the year-ago quarter. Goslings Stormy Ginger Beer case sales increased 42.9% to approximately 339,000 cases.
Adjusted EBITDA of $1.6 million in the third quarter of fiscal 2017 reflected a rise of 132.1%.
Castle Brands, Inc. Price, Consensus and EPS Surprise
Castle Brands, Inc. Price, Consensus and EPS Surprise | Castle Brands, Inc. Quote
Other Updates
During the fiscal third quarter, Castle Brands’ additional purchases of 1000 barrels of aged bourbon reserves, coupled with the continuation of the long-term new fill programs have supported continued sales of its Jefferson's bourbon products.
The company entered into five-year exclusive distribution agreement for The Arran Malt Single Malt Scotch Whisky and Robert Burns Single Malt Whisky and Blended Scotch Whisky in the U.S.
Castle Brands intends to expand its wine finishes program as well as introduce new Jefferson's expressions over the remainder of fiscal 2017. The company has also boosted its Irish whiskey offerings and expanded the barrel program for Knappogue Castle Whiskey.
Financials
As of Dec 31, 2016 the company has cash and cash equivalents of $0.94 million compared with $1.43 million as of Mar 31, 2016.
Zacks Rank & Peer Release
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 third quarter of fiscal 2017 jumped 38% year over year to $1.96 per share, outpacing the Zacks Consensus Estimate of $1.72.
Upcoming Peer Releases
Global brewer, Molson Coors Brewing Company’s (TAP - Free Report) is slated to release its fourth-quarter numbers on Feb 14.
Boston Beer Co. Inc.’s (SAM - Free Report) is expected to release its quarterly numbers on Feb 22.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest tickers for the entirety of 2017?
Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Be among the very first to see them >>