Monster Beverage Corporation MNST is a producer of energy drinks and alternative beverages. In June last year, Monster Beverage closed its deal with The Coca-Cola Company (TCCC). Under the strategic deal with TCCC, Coca-Cola and its bottling partners will act as Monster's preferred distribution partner globally, thereby ensuring greater exposure for Monsters’ products.
Monster Beverage delivered dismal results in fiscal 2015. Some of the major headwinds included unfavorable currency translations and the transitional impact of the Coca-Cola deal. However, Monster Beverage’s fundamentals remain impressive. With the implementation of the Coca-Cola deal, Monster Beverage is aggressively expanding in the international market, supported by strong demand in the energy drink category. Also, the company has a number of new products in its pipeline for 2016, which should drive the top line further.
Investors should however note that MNST’s recent earnings estimate revisions has mostly been southward. Moreover, MNST has weak history when it comes to recent earnings reports as the stock has posted three negative surprises in the last four quarters with an average negative surprise of 8.91%.
Currently, MNST has a Zacks Rank #3 (Hold), but that could change following Monster Beverage’s earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:
Earnings: MNST beat on earnings. Our consensus earnings estimate called for EPS of $0.75 per share, and the company reported EPS of $0.80 instead. Investors should note that these figures take out stock option expenses.
Revenues: MNST reported revenues of $680.2 million. This beat our consensus estimate of $660 million.
Key Stats to Note: Foreign currency had an unfavorable impact of $12.3 million on net sales..
Stock Price: Share prices increased about 13% in pre-market trading.
Check back later for our full write up on this MNST earnings report later.
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MONSTER BEVERAG (MNST): Free Stock Analysis Report
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