Back to top

Analyst Blog

The board of Monster Beverage Corporation (MNST - Analyst Report) has approved an additional $200 million share repurchase program, thereby bolstering shareholder value.

Under the latest program, the company’s board has authorized the repurchase of up to $200.0 million of its common stock. Monster repurchased approximately 6.7 million shares for $340 million in the fourth quarter of 2012, results of which were reported on Feb 27. Soon after the fourth quarter, the company repurchased an additional 0.3 million shares for approximately $16 million, thereby exhausting the available amount under the current share repurchase authorization of $250 million.

Share buybacks help the company reduce outstanding share count, thereby increasing earnings per share and return on equity. Apart from bolstering shareholder value, this strategic move will also lift the relatively undervalued share price. Regular share buybacks also reflect the company’s confidence in its fundamentals.

Monster’s fourth quarter 2012 earnings of 39 cents per share were ahead of the prior-year quarter by 10.6%, driven by top-line growth. Earnings, however, missed the Zacks Consensus Estimate of 41 cents. Sales grew 15% on a year over year basis, owing to the strong performance of Monster Energy brand in the international markets. The company is expected to continue to launch new brands in 2013.

Monster holds a Zacks Rank #3 (Hold). Other beverage companies that warrant a look include Companhia De Bebidas Das Ame , Coca Cola Hellenic Bottling Co. , and Molson Coors Brewing Co. (TAP - Analyst Report). While ABV carries a Zacks Rank #1 (Strong Buy), Coca Cola Hellenic and Molson Coors hold a Zacks Rank #2 (Buy).

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
RPC INC RES 24.91 +8.35%
LITHIA MOTO… LAD 94.59 +4.60%
DELTA AIR L… DAL 39.15 +3.90%
FLAMEL TECH… FLML 14.51 +3.50%
SOUTHWEST A… LUV 28.87 +2.92%