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What's in Store for Monster Beverage's (MNST) Q2 Earnings?

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Zacks Equity Research
·3 min read
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Monster Beverage Corporation MNST is likely to register a decline in the top line when it reports second-quarter 2020 results on Aug 4, after the closing bell. The Zacks Consensus Estimate for revenues is pegged at $997.9 million, which indicates a decline of 9.6% from the prior-year reported figure.

Further, the bottom line of this developer, marketer, seller, and distributor of energy drink beverages and concentrates is expected to decrease year over year. We note that the Zacks Consensus Estimate for earnings for the quarter under review has remained stable at 48 cents over the past 30 days. The figure suggests a decline of 9.4% from the prior-year quarter.

Notably, the company has a trailing four-quarter earnings surprise of 1.8%, on average. In the last reported quarter, this California-based company’s bottom line beat the Zacks Consensus Estimate by 8.3%.

Factors to Note

At its last earnings call on May 7, management highlighted that the company's sales in the month of April were significantly hurt by the on-going pandemic. However, it informed that bottler and distributor sales of the company's product to retail in the United States were impacted to a lesser extent. Additionally, the company hinted that there has been a shift in consumer channel preferences and package configurations since the middle of March, including a jump in at-home consumption and a fall in immediate consumption.

Monster Beverage had earlier informed that its sales for the second quarter through May 7 have been hit by lower traffic in convenience stores, gas stations and food service on premise. Nonetheless, the company pointed that e-commerce, club store, mass merchandise and grocery and related business remain stable.

We note that the company’s energy drink category, including Reign Total Body Fuel high-performance energy drinks and Reign Inferno thermogenic fuel high-performance energy drinks in the United States and outside, has been a significant growth driver. Also, Monster Beverage has been expanding international operations in various markets. Cumulatively, these might have benefited the company’s second-quarter performance.

Monster Beverage Corporation Price, Consensus and EPS Surprise

Monster Beverage Corporation Price, Consensus and EPS Surprise
Monster Beverage Corporation Price, Consensus and EPS Surprise

Monster Beverage Corporation price-consensus-eps-surprise-chart | Monster Beverage Corporation Quote

What the Zacks Model Unveils

Our proven model 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 chances of an earnings beat. 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 #2 and an Earnings ESP of +2.35%.

3 More Stocks With a Favorable Combination

Here are three other companies you may want to consider as our model shows that these too have the right combination of elements to post an earnings beat:

Ollie's Bargain Outlet Holdings OLLI has an Earnings ESP of +8.86% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Medifast MED has an Earnings ESP of +2.53% and a Zacks Rank #2.

Flowers Foods FLO has an Earnings ESP of +9.41% and a Zacks Rank #2.

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

Today, See These 5 Potential Home Runs >>

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Monster Beverage Corporation (MNST) : Free Stock Analysis Report
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MEDIFAST INC (MED) : Free Stock Analysis Report
Ollies Bargain Outlet Holdings, Inc. (OLLI) : Free Stock Analysis Report
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