We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Monster Beverage's (MNST) Q1 Earnings Lag Estimates, Sales Beat
Read MoreHide Full Article
Monster Beverage Corporation (MNST - Free Report) reported first-quarter 2021 results, wherein the bottom line lagged the Zacks Consensus Estimate whereas sales surpassed the same. Further, both metrics improved year over year. Results gained from continued strength in its energy drink category, particularly the Monster Energy brand.
Going forward, management doesn’t expect any material impact of the COVID-19 pandemic on the functioning of its co-packers and bottlers/distributors who manufacture and distribute products, respectively. Moreover, Monster Beverage’s supply chain remains unaffected, with no major impact on raw material and finished product shortages. The company is sourcing its aluminum can requirements from South America and Asia to meet growing demand. However, freight inefficiencies along with higher aluminum can costs remain concerns.
Shares of this Zacks Rank #3 (Hold) company have gained 4.6% in the past three months, outperforming the industry’s 3.6% growth.
Q1 Highlights
Monster Beverage’s earnings of 59 cents per share rose 14.2% year over year but missed the Zacks Consensus Estimate of 61 cents.
Net sales of $1,244 million improved 17.1% year over year and surpassed the Zacks Consensus Estimate of $1,223 million. Also, favorable currency fluctuations contributed $9.3 million to net sales.
During the quarter, the company launched Reign Cherry Limeade, Reign White Gummy Bear, Reign Inferno Watermelon warlord, Monster Ultra Gold in singles and a 4-pack, Monster Green, Low-Carb Monster, Monster Zero Ultra, Monster Ultra Paradise, Rehab Monster Strawberry Lemonade belonging to Rehab Monster brand, Monster Ultra Fiesta, Java Monster Oat Milk as well as Monster Ultra Paradise in Canada. Further, it rolled out the Monster Ultra Paradise, Reign Lilikoi Lychee singles and Reign Orange Dreamsicle, NOS Turbo, Pacific Punch in Mexico; and Mean Green in Honduras, Ultra Watermelon in Puerto Rico. Also, the Ultra Paradise in Aruba; Ultra Rosa made debut in Australia. It also launched the Monster Super Fuel in both Purple Passion and sugar-free flavors in New Zealand; Monster Energy Super Cola in Japan; and Pipeline Punch in Hong Kong and Macau.
Segmental Performance
Monster Energy Drinks: The segment primarily includes brands like Monster Energy drinks and Reign Total Body Fuel high-performance energy drinks. The segment’s net sales increased 17.9% year over year to $1.17 billion. The segment’s sales included a positive impact of $9.3 million from favorable currency rates.
Strategic Brands: In addition to affordable energy drink brands, the segment includes a range of energy drink brands acquired from The Coca-Cola Company (KO - Free Report) . The segment’s net sales improved 5.1% year over year to $67.8 million in the first quarter. Currency headwinds had no significant impact on the segment’s results.
Other: Net sales in the segment, which includes some products of American Fruits & Flavors sold to independent third parties (AFF Third-Party Products), grew 11.8% year over year to $5.7 million.
Costs & Margins
The company’s first-quarter 2021 gross margin contracted 250 basis points (bps) to 57.5% due to higher input costs, geographical sales mix and increased promotions.
Operating expenses grew 10.5% year over year to $300.8 million. As a percentage of sales, operating expenses declined 140 bps to 24.2%. Selling expenses, as a percentage of net sales, decreased 110 bps to 9.2%. Meanwhile, distribution costs, as a percentage of net sales, expanded 70 bps to 4.4%. General and administrative expenses, as a percentage of net sales, contracted 110 bps to 10.6%.
Operating income of $414.1 million grew 13.5% year over year. However, operating margin contracted 110 bps to 33.3% for the reported quarter.
Other Financials
Monster Beverage ended the quarter with cash and cash equivalents of $1,178.9 million and total stockholders' equity of $5,459.4 million.
In the reported quarter, the company did not buy back any shares. As of May 6, 2021, it had $441.5 million remaining under the previously authorized share repurchase plan.
Monster Beverage Corporation Price, Consensus and EPS Surprise
Coca-Cola FEMSA (KOF - Free Report) has a long-term earnings growth rate of 14.1% and currently, a Zacks Rank #2 (Buy).
+1,500% Growth: One of 2021’s Most Exciting Investment Opportunities
In addition to the stocks you read about above, would you like to see Zacks’ top picks to capitalize on the Internet of Things (IoT)? It is one of the fastest-growing technologies in history, with an estimated 77 billion devices to be connected by 2025. That works out to 127 new devices per second.
Zacks has released a special report to help you capitalize on the Internet of Things’s exponential growth. It reveals 4 under-the-radar stocks that could be some of the most profitable holdings in your portfolio in 2021 and beyond.
Image: Bigstock
Monster Beverage's (MNST) Q1 Earnings Lag Estimates, Sales Beat
Monster Beverage Corporation (MNST - Free Report) reported first-quarter 2021 results, wherein the bottom line lagged the Zacks Consensus Estimate whereas sales surpassed the same. Further, both metrics improved year over year. Results gained from continued strength in its energy drink category, particularly the Monster Energy brand.
Going forward, management doesn’t expect any material impact of the COVID-19 pandemic on the functioning of its co-packers and bottlers/distributors who manufacture and distribute products, respectively. Moreover, Monster Beverage’s supply chain remains unaffected, with no major impact on raw material and finished product shortages. The company is sourcing its aluminum can requirements from South America and Asia to meet growing demand. However, freight inefficiencies along with higher aluminum can costs remain concerns.
Shares of this Zacks Rank #3 (Hold) company have gained 4.6% in the past three months, outperforming the industry’s 3.6% growth.
Q1 Highlights
Monster Beverage’s earnings of 59 cents per share rose 14.2% year over year but missed the Zacks Consensus Estimate of 61 cents.
Net sales of $1,244 million improved 17.1% year over year and surpassed the Zacks Consensus Estimate of $1,223 million. Also, favorable currency fluctuations contributed $9.3 million to net sales.
During the quarter, the company launched Reign Cherry Limeade, Reign White Gummy Bear, Reign Inferno Watermelon warlord, Monster Ultra Gold in singles and a 4-pack, Monster Green, Low-Carb Monster, Monster Zero Ultra, Monster Ultra Paradise, Rehab Monster Strawberry Lemonade belonging to Rehab Monster brand, Monster Ultra Fiesta, Java Monster Oat Milk as well as Monster Ultra Paradise in Canada. Further, it rolled out the Monster Ultra Paradise, Reign Lilikoi Lychee singles and Reign Orange Dreamsicle, NOS Turbo, Pacific Punch in Mexico; and Mean Green in Honduras, Ultra Watermelon in Puerto Rico. Also, the Ultra Paradise in Aruba; Ultra Rosa made debut in Australia. It also launched the Monster Super Fuel in both Purple Passion and sugar-free flavors in New Zealand; Monster Energy Super Cola in Japan; and Pipeline Punch in Hong Kong and Macau.
Segmental Performance
Monster Energy Drinks: The segment primarily includes brands like Monster Energy drinks and Reign Total Body Fuel high-performance energy drinks. The segment’s net sales increased 17.9% year over year to $1.17 billion. The segment’s sales included a positive impact of $9.3 million from favorable currency rates.
Strategic Brands: In addition to affordable energy drink brands, the segment includes a range of energy drink brands acquired from The Coca-Cola Company (KO - Free Report) . The segment’s net sales improved 5.1% year over year to $67.8 million in the first quarter. Currency headwinds had no significant impact on the segment’s results.
Other: Net sales in the segment, which includes some products of American Fruits & Flavors sold to independent third parties (AFF Third-Party Products), grew 11.8% year over year to $5.7 million.
Costs & Margins
The company’s first-quarter 2021 gross margin contracted 250 basis points (bps) to 57.5% due to higher input costs, geographical sales mix and increased promotions.
Operating expenses grew 10.5% year over year to $300.8 million. As a percentage of sales, operating expenses declined 140 bps to 24.2%. Selling expenses, as a percentage of net sales, decreased 110 bps to 9.2%. Meanwhile, distribution costs, as a percentage of net sales, expanded 70 bps to 4.4%. General and administrative expenses, as a percentage of net sales, contracted 110 bps to 10.6%.
Operating income of $414.1 million grew 13.5% year over year. However, operating margin contracted 110 bps to 33.3% for the reported quarter.
Other Financials
Monster Beverage ended the quarter with cash and cash equivalents of $1,178.9 million and total stockholders' equity of $5,459.4 million.
In the reported quarter, the company did not buy back any shares. As of May 6, 2021, it had $441.5 million remaining under the previously authorized share repurchase plan.
Monster Beverage Corporation Price, Consensus and EPS Surprise
Monster Beverage Corporation price-consensus-eps-surprise-chart | Monster Beverage Corporation Quote
Stocks to Consider
Compania Cervecerias Unidas, S.A. (CCU - Free Report) , a Zacks Rank #1 (Strong Buy) stock, has an expected long-term earnings growth rate of 10.2%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Coca-Cola FEMSA (KOF - Free Report) has a long-term earnings growth rate of 14.1% and currently, a Zacks Rank #2 (Buy).
+1,500% Growth: One of 2021’s Most Exciting Investment Opportunities
In addition to the stocks you read about above, would you like to see Zacks’ top picks to capitalize on the Internet of Things (IoT)? It is one of the fastest-growing technologies in history, with an estimated 77 billion devices to be connected by 2025. That works out to 127 new devices per second.
Zacks has released a special report to help you capitalize on the Internet of Things’s exponential growth. It reveals 4 under-the-radar stocks that could be some of the most profitable holdings in your portfolio in 2021 and beyond.
Click here to download this report FREE >>