U.S. Markets open in 6 hrs 1 min

Monster Beverage Earnings, Revenue Miss in Q2


Monster Beverage Earnings, Revenue Miss in Q2

Investing.com - Monster Beverage (NASDAQ:MNST) reported second-quarter earnings and revenue that missed analysts' expectations on Wednesday as higher costs weighed on margins.


The firm reported earnings per share of $0.53 on revenue of $1.10 billion. Analysts polled by Investing.com anticipated earnings per share of $0.56 on revenue of $1.13 billion. That compared to earnings per share of $0.51 on revenue of $1.02 billion in the same period a year earlier. The company had reported earnings per share of $0.50 on revenue of $945.99 million in the previous quarter.

The earnings miss comes as higher sales, led by the company's Reign Total Body Fuel energy drinks, were offset somewhat by higher costs that weighed on margins.

"We are pleased to report record gross and net sales in the 2019 second quarter, driven by our Reign Total Body Fuel energy drinks, which we launched in the first quarter, as well as growth in our Monster Energy® brand energy drinks both domestically and internationally," Monster said in a statement.

The company’s Monster energy drinks segment saw sales grow by 9.6% to $1.02 billion.

Operating expenses for the 2019 second quarter were $282.3 million, compared with $262.6 million in the 2018 second quarter.

Gross profit, as a percentage of net sales, for the 2019 second quarter was 59.9%, compared with 61.1% in the 2018 second quarter, with the company blaming the decline on "geographical and product sales mix as well as increases in certain other input costs," which combined to offset increased sales prices of its products sold in the United States and Canada, as well as lower aluminum costs.

The company said it would seek to launch its new Monster energy brand both domestically and abroad.

“Later this year we are planning to introduce a number of new Monster Energy brand energy drinks in the United States and in various international markets," Monster said in a statement.


Monster Beverage shares lost 7.27% to trade at $56.00 in after-hours trade following the report.

Stay up-to-date on all of the upcoming earnings reports by visiting Investing.com's earnings calendar

Related Articles

Stocks - Wall Street Roars Back from Big Early Losses

Fox Corp reports 5% rise in quarterly revenue

Canada's Manulife posts 1.5% rise in quarterly profit