Have you assessed how the international operations of Monster Beverage (MNST) performed in the quarter ended December 2024? For this energy drink maker, possessing an expansive global footprint, parsing the trends of international revenues could be critical to gauge its financial resilience and growth prospects.
In today's increasingly interconnected global economy, a company's ability to tap into international markets can be a pivotal factor in shaping its overall financial health and growth trajectory. For investors, understanding a company's reliance on overseas markets has become increasingly crucial, as it offers insights into the company's sustainability of earnings, ability to tap into diverse economic cycles and overall growth potential.
Being present in international markets serves as a counterbalance to domestic economic challenges while offering chances to engage with more rapidly evolving economies. However, this kind of diversification introduces challenges like currency fluctuations, geopolitical uncertainties and varying market trends.
Upon examining MNST's recent quarterly performance, we noticed several interesting patterns in the revenue generated from its international segments, which are commonly analyzed and observed by Wall Street experts.
The company's total revenue for the quarter amounted to $1.81 billion, showing rise of 4.7%. We will now explore the breakdown of MNST's overseas revenue to assess the impact of its international operations.
Exploring MNST's International Revenue Patterns
Asia Pacific accounted for 7.32% of the company's total revenue during the quarter, translating to $132.69 million. Revenues from this region represented a surprise of +6.84%, with Wall Street analysts collectively expecting $124.19 million. When compared to the preceding quarter and the same quarter in the previous year, Asia Pacific contributed $132.05 million (7.02%) and $109.9 million (6.35%) to the total revenue, respectively.
During the quarter, Latin America and Caribbean contributed $177.67 million in revenue, making up 9.81% of the total revenue. When compared to the consensus estimate of $152.76 million, this meant a surprise of +16.31%. Looking back, Latin America and Caribbean contributed $159.18 million, or 8.46%, in the previous quarter, and $169.73 million, or 9.81%, in the same quarter of the previous year.
EMEA generated $356.29 million in revenues for the company in the last quarter, constituting 19.66% of the total. This represented a surprise of +10.82% compared to the $321.51 million projected by Wall Street analysts. Comparatively, in the previous quarter, EMEA accounted for $417.59 million (22.20%), and in the year-ago quarter, it contributed $309.14 million (17.87%) to the total revenue.
Projected Revenues in Foreign Markets
Wall Street analysts expect Monster Beverage to report a total revenue of $1.98 billion in the current fiscal quarter, which suggests an increase of 4% from the prior-year quarter. Revenue shares from Asia Pacific, Latin America and Caribbean and EMEA are predicted to be 7.6%, 9.3% and 20.6%, corresponding to amounts of $150.9 million, $182.85 million and $407.47 million, respectively.
For the full year, the company is projected to achieve a total revenue of $7.96 billion, which signifies a rise of 6.2% from the last year. The share of this revenue from various regions is expected to be: Asia Pacific at 7.8% ($623.26 million), Latin America and Caribbean at 9.3% ($743.19 million) and EMEA at 20% ($1.59 billion).
Key Takeaways
Relying on global markets for revenues presents both prospects and challenges for Monster Beverage. Therefore, scrutinizing its international revenue trends is key to effectively forecasting the company's future outlook.
In an era of growing international interdependencies and escalating geopolitical disputes, Wall Street analysts are vigilant in tracking these trends for businesses with a global reach, in order to refine their predictions of earnings. It should be noted, however, that a multitude of other elements, such as a company's domestic position, also play a significant role in shaping the earnings forecasts.
At Zacks, a company's changing earnings outlook is given considerable attention due to its proven, strong influence on a stock's price performance in the near term. The connection here is straightforward and positive: when earnings estimates are revised upward, the stock price generally follows suit, increasing as well.
Our proprietary stock rating tool, the Zacks Rank, with its externally validated exceptional track record, harnesses the power of earnings estimate revisions to serve as a dependable measure for anticipating the short-term price trends of stocks.
Monster Beverage currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Assessing Monster Beverage's Stock Price Movement in Recent Times
The stock has increased by 16.2% over the past month compared to the 2.3% fall of the Zacks S&P 500 composite. Meanwhile, the Zacks Consumer Staples sector, which includes Monster Beverage, has increased 7% during this time frame. Over the past three months, the company's shares have experienced a gain of 3.7% relative to the S&P 500's 3% decline. Throughout this period, the sector overall has witnessed a 1.9% increase.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
