Monster Beverage (MNST) Looks Poised for Q3 Earnings Beat
Monster Beverage Corporation MNST is expected to report third-quarter 2023 results on Nov 2, after the closing bell. The beverage company is anticipated to have witnessed revenue and earnings growth in the to-be-reported quarter.
The Zacks Consensus Estimate for third-quarter revenues is pegged at $1.86 billion, indicating growth of 14.7% from that reported in the year-ago quarter. The consensus estimate for earnings of 40 cents per share suggests growth of 33.3% from the year-ago quarter’s actual. The consensus mark has been unchanged in the past 30 days.
In the last reported quarter, the company posted break-even earnings. However, it has delivered an earnings surprise of 2.2%, on average, in the trailing four quarters.
Monster Beverage Corporation Price and EPS Surprise
Monster Beverage Corporation price-eps-surprise | Monster Beverage Corporation Quote
Key Factors to Note
Monster Beverage has been gaining from the continued strength in the energy drinks category and robust product innovation plans. It has been on track with price increases to wean the ongoing cost pressures. These are likely to have boosted the top and bottom-line performances in the third quarter.
The company has been poised to gain from growth in the Monster Energy family of brands, and strength in Strategic and Affordable energy brands. We expect revenues for the company’s Monster Energy Drinks segment to increase 10.5% year over year in third-quarter 2023. Meanwhile, the Strategic Brands and Alcohol Brands segments are predicted to deliver sales growth of 12.3% and 59.3%, respectively.
Monster Beverage has been committed to product launches and innovation to boost growth. The company has been introducing many products and expanding distribution in the international markets, which have been aiding its performance.
Also, the company has been implementing pricing actions to overcome the ongoing cost pressures. Continued pricing actions are expected to have aided the company’s performance in the to-be-reported quarter.
However, Monster Beverage has been witnessing rising costs due to higher payroll expenses. MNST has been reeling under supply-chain headwinds due to the uncertain global environment.
What the Zacks Model Unveils
Our proven model conclusively predicts an earnings beat for Monster Beverage this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Monster Beverage has a Zacks Rank #3 and an Earnings ESP of +1.98%.
Stocks With the Favorable Combination
Here are three companies worth considering, as our model shows that these have the correct combination to beat on earnings this time:
Church & Dwight Co. CHD has an Earnings ESP of +5.00% and currently sports a Zacks Rank #1. The company is slated to witness top-line growth when it reports third-quarter 2023 results. The Zacks Consensus Estimate for CHD’s quarterly revenues is pegged at $1.43 billion, suggesting growth of 8.5% from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Church & Dwight’s quarterly earnings moved up by a penny over the last seven days to 68 cents per share, indicating a decline of 10.5% from the year-ago quarter’s reported number. CHD has delivered an earnings surprise of 12.1%, on average, in the trailing four quarters.
The Boston Beer Company SAM has an Earnings ESP of +0.71% and a Zacks Rank #3 at present. The company is likely to register bottom-line growth when it reports third-quarter 2023 numbers. The Zacks Consensus Estimate for The Boston Beer Company’s quarterly earnings per share of $4.25 suggests an increase of 11.3% from the year-ago quarter’s reported level.
SAM has a trailing four-quarter negative earnings surprise of 74.9%, on average. The Zacks Consensus Estimate for The Boston Beer Company’s quarterly revenues is pegged at $592.9 million, indicating a drop of 0.6% from the figure reported in the prior-year quarter.
Colgate-Palmolive Company CL currently has an Earnings ESP of +0.37% and a Zacks Rank of 3. The company is likely to register increases in the top and bottom lines when it reports third-quarter 2023 results. The Zacks Consensus Estimate for Colgate-Palmolive’s quarterly revenues is pegged at $4.8 billion, suggesting growth of 8.3% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for quarterly earnings has been unchanged in the past 30 days at 80 cents per share, which indicates 8.1% growth from the year-ago quarter's reported number. CL delivered an earnings surprise of 1.7%, on average, in the trailing four quarters.
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Colgate-Palmolive Company (CL) : Free Stock Analysis Report
Church & Dwight Co., Inc. (CHD) : Free Stock Analysis Report
Monster Beverage Corporation (MNST) : Free Stock Analysis Report
The Boston Beer Company, Inc. (SAM) : Free Stock Analysis Report
