Morgan Stanley Reiterates OVERWEIGHT Monster Beverage On Strong 1Q Margins
Benzinga tried to put a negative spin on this with their article title but April sales were NOT weak.
"According to Nielsen reports for the 4 weeks ended April 26, 2014, sales of energy drinks in the convenience and gas channel, in dollars, increased by 6.7% over the comparable period in 2013. Sales of Monster increased by 13.4% over the comparable period last year, while sales of Red Bull increased by 2.8%."
"According to Nielsen, in the 4 weeks ended April 26, 2014, sales of Energy Plus Coffee drinks, in dollars, in the convenience and gas channel increased 12.8% over the same period last year. Java Monster was 7.1% higher than in the comparable period last year"
CEO Rodney: "Gross sales in April 2014 were approximately 7.8% higher than in April 2013. We caution, again, that sales in a single month and over a short period are often disproportionately affected by various factors such as, for example, selling days, days of the week in which holidays fall and the timing of promotions in retail stores and should not necessarily be imputed to or regarded as indicative of results for the full quarter or any future period"
Compare this +7.8% with the Avg. Rev Growth over the last 4 Qtrs of +6.29% for MNST and explain to me how this is weak. Drink sales are seasonal and weather related so you have to average over the past year.
And for further comparison, the Rev Growth for MNST for the last Q2 (which includes April) came in at +6.39% Y/Y, so the +7.8% figure sited as guidance by CEO Rodney compares favorably with this too. Try to spin all you want but this was a very good quarterly report.