Castle Brands Inc (NYSEAMERICAN:ROX), the producer of alcohol brands including Jefferson’s Bourbon, posted fiscal fourth-quarter and full-year earnings early Monday that swung to a profit.
The New York Company brought in $26.9 million in revenue in the quarter, up 11% year-over-year from $24.1 million in the year-ago quarter. That was good enough to beat the consensus estimate of $26.3 million.
Shares spiked 27% above Friday’s close to $0.65 before settling in just 1.3% higher at $0.52 to end the Monday session.
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Net income in 4Q nearly quintupled to $1.7 million from $349,892 in the prior-year quarter. On a per share basis, earnings increased to $0.05 per share from flat.
For the year, revenue climbed 6.6% to $95.8 million from $89.9 million, just ahead of Street expectations of $95.2 million. Earnings swung to a $0.03 per share gain from a $0.01 loss.
A primary driver of the strong results was the success of Jefferson’s bourbons, which saw case sales grow more than 20% in fiscal 2019. Goslings Stormy Ginger Beer saw sales increase 6.4% and surpassed 2 million cases for the year.
"This was an outstanding year for Castle Brands,” CEO Richard Lampen said. “Continued growth of our more profitable brands, such as Jefferson's, Goslings and Knappogue Irish whiskey, resulted in continued growth in revenue and gross profit. Importantly, we reported positive net income per share for the fiscal year for the first time in the Company's history.”
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