Replies to post #19458 on Castle Brands Board (ROX)

[$oldier Hard]

Nice call Zacks. LOL. Only $3,700,000.00 off.

February 06, 2018, 09:40:00 AM EDT
By Zacks Equity Research, Zacks.com


Castle Brands Inc . ROX is expected to report third-quarter fiscal 2018 results on Feb 8. Last quarter, the company reported in-line results.


Let's see how things are shaping up for this announcement.


Factors to Consider


Growth in the company's leading brands - Jefferson's, Irish whiskeys and Goslings Stormy Ginger Beer - has resulted in solid revenue and gross profit growth. Investment in aging and new-fill bourbon supports rapid growth of its super premium small-batch Jefferson's bourbons.


Castle Brands acquired an additional 5% stake in Copperhead Distillery Company, the owner of the Kentucky Artisan Distillery, in October 2017. With this, Castle Brands has increased its stake in Copperhead Distillery Company to 25%. The move followed the completion of an initial 20% purchase in 2015.


The combination of its new fill whiskey program with opportunistic buyouts of aged whiskies enables it to create substantial reserves of aged bourbon to support strong demand of its Jefferson's brand.


For the six months ended Sep 30, 2017, Castle Brands net sales increased 14.8% year over year, driven by solid improvement in Jefferson's bourbons and Goslings Stormy Ginger Beer. This solid momentum is expected to continue in the third quarter. Notably, the Zacks Consensus Estimate for revenues is pegged at $20.4 million, implying an 11.5% increase.