Monster Beverage Earnings: Here’s Why Shares are Down Now
By Derek Hoffman | More Articles
February 27, 2013 Page 1 of 2 Monster Beverage Corporation (NASDAQ:MNST) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 4.07%.
These stocks are hitting our Profit Targets. Click here now to discover winning stocks!
Monster Beverage Corporation Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 11.43% to $0.39 in the quarter versus EPS of $0.35 in the year-earlier quarter.
Revenue: Rose 15.01% to $471.5 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Monster Beverage Corporation reported adjusted EPS income of $0.39 per share. By that measure, the company missed the mean analyst estimate of $0.41. It missed the average revenue estimate of $483.61 million.
Quoting Management: Rodney C. Sacks, Chairman and Chief Executive Officer, said: “We are pleased to report another quarter of solid results. While the growth of the energy drink market in the United States has softened from previous quarters, the Monster Energy brand continues to grow in excess of market growth. We are also pleased to report that in 2012 gross sales outside the United States for the Company exceeded $500 million. We successfully launched the Monster Energy brand in a number of new international markets in the last few months and are continuing with new launches in 2013.” He reiterated that, “The Company’s energy drinks are safe, based on both the Company’s and the industry’s long successful track record and the scientific evidence supporting the safety of Monster Energy’s ingredients.”
Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.49 to a profit $0.48. For the current year, the average estimate is a profit of $1.89, which is the same with that ninety days ago.