Castle Brands Inc. (NYSE:ROX) Stuns with Walmart Inc. (NYSE:WMT) Deal

Castle Brands Inc. (NYSE:ROX)

Castle Brands Inc. (NYSE:ROX) shares have been up over 91% on news that the company has reached an agreement to supply Goslings Stormy Ginger Beer and Goslings Stormy Diet Ginger Beer to all U.S. Walmart stores. Consumers can expect to find Goslings Stormy Ginger Beer in Walmart stores in March 2017. Walmart Inc. (NYSE:WMT) is one of the world’s most valuable companies in the world by market value, and is the largest grocery retailer in the U.S. In 2016, 62.3% of Walmart’s $478.6 billion sales came from its U.S. operations.

 Pre-market trading is seeing ROX at $1.39 – it closed at $0.73 yesterday. Castle Brands Inc. (NYSE:ROX) all-time high is just over $2 and its average daily volume is around 125,000 shares. However over 1 million shares have traded hands before the regular session opens.

On February 10, 2017 Castle Brands Inc.’s (NYSE:ROX) earnings broke even in FY Q3 2017, in line with street estimates. The company had posted a loss of a penny in the same quarter last year. Q3 revenues of $18.31 million missed estimates of $20.74 million by 11.7%. However, revenues reflected a 6.4% YoY increase.

The New York, NY-based company has had increasing sales every year since 2012 when the company reported $35.5 million in sales. EPS has been marginally negative for the past five years and in each of the last two years shareholders of Castle Brands Inc.’s (NYSE:ROX) experienced an EPS loss of $0.02. 

 

2/28/2017
Ticker Symbol ROX
Last Price a/o 9:18 AM EST  $                      1.34
Average Volume                    124,250
Market Cap (mlns)  $                  113.39
Sales (mlns) $74.70
Shares Outstanding (mlns) 155.35
Share Float (mlns) 85.57
Shortable Yes
Optionable No
Inside Ownership 1.80%
Short Float 1.31%
Short Interest Ratio 9.03
Quarterly Return -3.95%
YTD Return -3.96%
Year Return -16.08%

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

 About the author: James Marion is a University of Houston student studying Business with a concentration in Finance.