Latest news with #MNST
Yahoo
2 days ago
- Business
- Yahoo
MNST Q1 Earnings Call: Lower Sales on Distribution Impacts, Margin Expansion from Pricing and Supply Chain
Energy drink company Monster Beverage (NASDAQ:MNST) missed Wall Street's revenue expectations in Q1 CY2025, with sales falling 2.3% year on year to $1.85 billion. Its non-GAAP profit of $0.47 per share was 2.2% above analysts' consensus estimates. Is now the time to buy MNST? Find out in our full research report (it's free). Revenue: $1.85 billion vs analyst estimates of $1.98 billion (2.3% year-on-year decline, 6.3% miss) Adjusted EPS: $0.47 vs analyst estimates of $0.46 (2.2% beat) Adjusted EBITDA: $594.6 million vs analyst estimates of $598.4 million (32.1% margin, 0.6% miss) Operating Margin: 30.7%, up from 28.5% in the same quarter last year Market Capitalization: $61.44 billion Monster's first quarter results were influenced by a combination of distribution timing, adverse foreign exchange rates, and a challenging economic environment. Management specifically cited irregular ordering patterns from bottlers and distributors, particularly in the United States and EMEA regions, as a key driver of sales softness. Co-CEO Hilton Schlosberg explained, 'the first quarter was impacted by bottler distributor ordering patterns in the United States and had an interesting situation in the quarter where the numbers were impacted by bottler distributor ordering patterns.' Despite these headwinds, Monster achieved higher operating margins due to pricing actions and supply chain optimizations, which improved gross profit as a percentage of sales compared to the previous year. Looking ahead, Monster's management highlighted continued growth in global energy drink demand and the expansion of its innovation pipeline as central to its outlook. CEO Rodney Sacks noted, 'the energy category continues to grow globally. We believe that household penetration continues to increase in the energy drink category.' Management also addressed anticipated margin pressures from rising input costs, particularly aluminum, with Schlosberg advising, 'I wouldn't expect that the second quarter margin will be as high as the first quarter margin.' The company signaled additional product launches and ongoing market share initiatives as priorities for the remainder of the year, while emphasizing ongoing supply chain and pricing strategies to mitigate cost volatility. Monster's first quarter revenue was affected by external distribution factors and currency headwinds, while margin expansion was achieved through pricing and operational improvements. Distribution timing impacts: Management attributed lower reported sales to bottler and distributor ordering patterns, with U.S. and EMEA partners adjusting inventory and production schedules independently of Monster's direct influence. Supply chain optimization: Gross margin improvements were driven by efficiencies in procurement and logistics, as well as the benefit of price increases across key markets. Management highlighted that these actions helped offset some cost pressures. Foreign currency and weather headwinds: Adverse currency movements and unfavorable weather conditions, along with one less selling day compared to the prior year, contributed negatively to reported sales, particularly in international operations. Market share shifts: Monster acknowledged competitive pressures, noting that while its value share in certain channels remained steady, volume share declined amid rising prices. Schlosberg described ongoing efforts to regain market share, referencing recent sales rallies and new product launches as part of this strategy. Innovation pipeline: The quarter featured a higher volume of new product introductions, with management stating that more innovation was launched in Q1 than will be in Q2. Notable launches included new flavors across core energy and coffee lines, as well as incremental expansion of the affordable Predator brand in international markets. Monster expects near-term growth to be shaped by continued category expansion, further product innovation, and the management of margin pressures from rising input and logistics costs. Category growth and consumer demand: Management sees sustained increases in global energy drink consumption and household penetration. Rodney Sacks cited scanner data showing acceleration in retail take-away trends, especially in April, and remains optimistic about long-term category growth despite short-term sales fluctuations. Input cost management: Rising costs for raw materials—particularly aluminum—are expected to pressure gross margins in future quarters. Management is pursuing risk mitigation strategies, including hedging and localizing supply chains, but acknowledged that margin levels may not match those achieved in Q1. Ongoing product launches and market expansion: The company plans additional innovation in both core and affordable energy segments throughout 2025, with launches in new international markets. Management believes these initiatives will help support sales growth and defend or regain market share against competitors. In the coming quarters, the StockStory team will monitor (1) Monster's ability to sustain or grow market share in the U.S. and internationally, (2) the impact of additional product launches and innovation on sales momentum, and (3) management's effectiveness in mitigating cost pressures, particularly from aluminum and logistics. Execution on pricing and supply chain initiatives will also be critical to future margin performance. Monster currently trades at a forward P/E ratio of 33.5×. In the wake of earnings, is it a buy or sell? Find out in our full research report (it's free). Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today. 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Yahoo
15-05-2025
- Business
- Yahoo
Monster's Comeback Continues
MNST develops, markets, distributes, and sells energy drinks and concentrates. Its three main lines of business focus on the Monster brand, concentrates, and its subsidiary, American Fruits and Flavors LLC. The company's brands include Monster Energy, Monster Ultra, Java Monster, Juice Monster, Reign, NOS, Burn, Bang, and Mother, along with beers and flavored malt beverages. On the earnings report front, MNST's first-quarter fiscal 2025 report showed a 2.3% decrease in net sales, though that was offset by a 56.5% rise in gross profit, a 6.2% increase in overseas sales (to $790.5 million), and a 7.4% jump in diluted per-share earnings (to $0.45). The company is optimistic about its prospects in China and India, which feature its Predator brand. Big Money has not only noticed this continued turnaround, it has fueled it. It's no wonder MNST shares are up 15% this year so far – and they could rise more. MoneyFlows data shows how a rare bullish signal reflects Big Money investors are betting heavily on the forward picture of the stock. Institutional volumes reveal plenty. For much of the last year, MNST has enjoyed strong investor demand, which we believe to be institutional support. Each green bar signals unusually large volumes in MNST shares. They reflect our proprietary inflow signal, pushing the stock higher: Plenty of staples names are under accumulation right now. But there's a powerful fundamental story happening with Monster. Institutional support and a healthy fundamental backdrop make this company worth investigating. As you can see, MNST has had strong sales and earnings growth: 3-year sales growth rate (+10.7%) 3-year earnings growth rate (+7%) Source: FactSet Also, EPS is estimated to ramp higher this year by +12.8%. Now it makes sense why the stock has been powering to new heights. MNST is once again delivering strong financial performance. Marrying great fundamentals with our proprietary software has found some big winning stocks over the long term. Monster has been a top-rated stock at MoneyFlows in the past, and it's roaring back again. That means the stock has unusual buy pressure and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis. It's made the rare Outlier 20 report multiple times in the last year, and there could be more growth on the horizon. The blue bars below show when MNST was a top pick…rising with Big Money: Tracking unusual volumes reveals the power of money flows. This is a trait that most outlier stocks exhibit…the best of the best. Big Money demand drives stocks upward. The MNST rally isn't new at all. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio. Disclosure: the author holds no position in MNST at the time of publication. If you are a Registered Investment Advisor (RIA) or are a serious investor, take your investing to the next level, learn more about the MoneyFlows process here. This article was originally posted on FX Empire Sportradar Group Scoring with Big Money Investors Flock to Royal Gold Slight Bounce by the Dollar Despite Weaker GDP Agnico Eagle's Strong Gold Production Attracts Big Money Monster's Comeback Continues Duolingo Demand, Earnings Lift Shares Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Insider
15-05-2025
- Business
- Business Insider
Analysts Offer Insights on Consumer Goods Companies: Monster Beverage (MNST) and Walmart (WMT)
There's a lot to be optimistic about in the Consumer Goods sector as 2 analysts just weighed in on Monster Beverage (MNST – Research Report) and Walmart (WMT – Research Report) with bullish sentiments. Confident Investing Starts Here: Monster Beverage (MNST) In a report issued on May 9, Bonnie Herzog from Goldman Sachs reiterated a Buy rating on Monster Beverage. The company's shares closed last Wednesday at $61.00. According to Herzog is a 4-star analyst with an average return of 4.5% and a 57.1% success rate. Herzog covers the Consumer Goods sector, focusing on stocks such as Coca-Cola Europacific Partners, Constellation Brands, and Vita Coco Company. Currently, the analyst consensus on Monster Beverage is a Moderate Buy with an average price target of $63.13, a 4.8% upside from current levels. In a report issued on May 11, CICC also upgraded the stock to Buy with a $65.00 price target. Walmart (WMT) In a report released today, Christopher Horvers from J.P. Morgan maintained a Buy rating on Walmart, with a price target of $112.00. The company's shares closed last Wednesday at $96.83. According to Horvers is a 5-star analyst with an average return of 7.5% and a 61.1% success rate. Horvers covers the NA sector, focusing on stocks such as Academy Sports and Outdoors, Floor & Decor Holdings, and Dick's Sporting Goods. The word on The Street in general, suggests a Strong Buy analyst consensus rating for Walmart with a $108.71 average price target, which is a 13.2% upside from current levels. In a report issued on May 2, D.A. Davidson also maintained a Buy rating on the stock.
Business Insider
12-05-2025
- Business
- Business Insider
Monster Beverage upgraded to Outperform from Market Perform at CICC
CICC upgraded Monster Beverage (MNST) to Outperform from Market Perform with a $65 price target Protect Your Portfolio Against Market Uncertainty Discover companies with rock-solid fundamentals in TipRanks' Smart Value Newsletter. Receive undervalued stocks, resilient to market uncertainty, delivered straight to your inbox. Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Yahoo
10-05-2025
- Business
- Yahoo
Monster Beverage (MNST) Q1 Earnings: How Key Metrics Compare to Wall Street Estimates
Monster Beverage (MNST) reported $1.85 billion in revenue for the quarter ended March 2025, representing a year-over-year decline of 2.4%. EPS of $0.47 for the same period compares to $0.42 a year ago. The reported revenue represents a surprise of -6.40% over the Zacks Consensus Estimate of $1.98 billion. With the consensus EPS estimate being $0.46, the EPS surprise was +2.17%. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how Monster Beverage performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Net Sales- Alcohol Brands: $34.70 million versus $50.18 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -38.1% change. Net Sales- Strategic Brands: $98.33 million versus the two-analyst average estimate of $101.81 million. The reported number represents a year-over-year change of -9.3%. Net Sales- Monster Energy Drinks: $1.72 billion compared to the $1.80 billion average estimate based on two analysts. The reported number represents a change of -0.8% year over year. Net Sales- Other: $5.98 million compared to the $5.95 million average estimate based on two analysts. The reported number represents a change of +8% year over year. View all Key Company Metrics for Monster Beverage here>>>Shares of Monster Beverage have returned +4.1% over the past month versus the Zacks S&P 500 composite's +13.7% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. 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 Monster Beverage Corporation (MNST) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
