Monster Beverage Earnings: Here’s Why the Stock is Up Now

Monster Beverage Corp (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 5.47%.

Monster Beverage Corp Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 5.08% to $0.62 in the quarter versus EPS of $0.59 in the year-earlier quarter.

Revenue: Rose 6.46% to $630.9 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Monster Beverage Corp reported adjusted EPS income of $0.62 per share. By that measure, the company missed the mean analyst estimate of $0.64. It missed the average revenue estimate of $646.14 million.

Quoting Management: Rodney C. Sacks, Chairman and Chief Executive Officer, said: “We are pleased to report another quarter of solid sales growth, in both our domestic and international markets, but note that there were certain exceptional costs that affected profitability during the quarter. Despite the single digit category growth rates we are seeing in our major markets, the Monster Energy brand continues to grow in excess of such category growth. Monster Energy Zero Ultra, launched in the third quarter of 2012, has become one of our best-selling products. Following on this success, we launched Monster Energy Ultra Blue in March 2013.”

Key Stats (on next page)…

Revenue increased 30.29% from $484.22 million in the previous quarter. EPS increased 47.62% from $0.42 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.59 and has not changed. For the current year, the average estimate has moved up from a profit of $2.1 to a profit of $2.12 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)