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Can Castle Brands (ROX) Surprise this Earnings Season?
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Castle Brands Inc. is set to report first-quarter fiscal 2017 results later this month. Last quarter, the company reported in-line results. Let’s see how things are shaping up for this announcement.
Castle Brands has been reporting solid growth in revenues in the past few quarters, driven by its core brands, particularly the ginger beer and whiskey categories. Strong momentum in the beer and whiskey categories is expected to continue in the first quarter as well. Castle Brands expects the sales of Jefferson's bourbons, Gosling's Rum and Irish whiskeys to gain further momentum in the upcoming quarters.
Castle Brands has recently increased its inventory of aged bourbon. Moreover, the company signed two long-term new fill agreements to increase its supply of aged bourbon for Jefferson's brand. The company also launched an upgraded packaging for Goslings Rum and Knappogue Castle Irish whiskeys.
Earnings Whisper
Our proven model does not conclusively show that Castle Brands is likely to beat earnings this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank of #1(Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here, as you will see below.
Zacks ESP: Castle Brands has an Earnings ESP is 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate stand at a loss of 1 cent.
Zacks Rank: Castle Brands has a Zacks Rank #5 (Strong Sell). As it is, we caution against stocks with Zacks Rank #4 and 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions momentum.
Other Stocks to Consider
Here are some other companies in the consumer staples sector that can be considered as our model shows that they have the right combination of elements to post an earnings beat this quarter:
Dean Foods Company has an Earnings ESP of +2.63% and a Zacks Rank #2
Post Holdings, Inc. (POST - Free Report) has an Earnings ESP of +14.89% and a Zacks Rank #2
Constellation Brands, Inc. (STZ - Free Report) has an Earnings ESP of +0.60% and a Zacks Rank #2
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Can Castle Brands (ROX) Surprise this Earnings Season?
Castle Brands Inc. is set to report first-quarter fiscal 2017 results later this month. Last quarter, the company reported in-line results. Let’s see how things are shaping up for this announcement.
CASTLE BRANDS Price and EPS Surprise
CASTLE BRANDS Price and EPS Surprise | CASTLE BRANDS Quote
Factors to Consider
Castle Brands has been reporting solid growth in revenues in the past few quarters, driven by its core brands, particularly the ginger beer and whiskey categories. Strong momentum in the beer and whiskey categories is expected to continue in the first quarter as well. Castle Brands expects the sales of Jefferson's bourbons, Gosling's Rum and Irish whiskeys to gain further momentum in the upcoming quarters.
Castle Brands has recently increased its inventory of aged bourbon. Moreover, the company signed two long-term new fill agreements to increase its supply of aged bourbon for Jefferson's brand. The company also launched an upgraded packaging for Goslings Rum and Knappogue Castle Irish whiskeys.
Earnings Whisper
Our proven model does not conclusively show that Castle Brands is likely to beat earnings this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank of #1(Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here, as you will see below.
Zacks ESP: Castle Brands has an Earnings ESP is 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate stand at a loss of 1 cent.
Zacks Rank: Castle Brands has a Zacks Rank #5 (Strong Sell). As it is, we caution against stocks with Zacks Rank #4 and 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions momentum.
Other Stocks to Consider
Here are some other companies in the consumer staples sector that can be considered as our model shows that they have the right combination of elements to post an earnings beat this quarter:
Dean Foods Company has an Earnings ESP of +2.63% and a Zacks Rank #2
Post Holdings, Inc. (POST - Free Report) has an Earnings ESP of +14.89% and a Zacks Rank #2
Constellation Brands, Inc. (STZ - Free Report) has an Earnings ESP of +0.60% and a Zacks Rank #2
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>