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Monster Beverage (MNST) to Post Q2 Earnings: What's in Store?
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Monster Beverage Corporation (MNST - Free Report) is expected to report second-quarter 2021 results on Aug 5, after the closing bell. The beverage company is anticipated to have witnessed revenue and earnings growth in the to-be-reported quarter.
The Zacks Consensus Estimate for second-quarter earnings of 67 cents per share suggests a gain of 13.6% from 59 cents reported in the year-ago quarter. The consensus mark has been unchanged in the past 30 days. The consensus mark for revenues is pegged at $1.38 billion, indicating growth of 26.3% from that reported in the year-ago quarter.
In the last reported quarter, the company’s earnings missed the Zacks Consensus Estimate by 3.3%. However, it has delivered an earnings surprise of 7%, on average, in the trailing four quarters.
Monster Beverage Corporation Price and EPS Surprise
Monster Beverage has been benefiting from the continued strength in the energy drinks category, particularly the Monster Energy brand, which has been in good shape despite the industry challenges. The increased awareness for healthy living has led to a rise in demand for the company’s products, mainly energy and health drinks. Gains from strong demand for energy drinks are expected to have aided its second-quarter revenues.
The company is expected to have witnessed momentous growth in e-commerce, club store, mass merchandiser and grocery-related businesses. Foot traffic at its largest convenience and gas channel has been witnessing improved trends from the latter half of second-quarter 2020, which is likely to have continued in the to-be-reported quarter.
Monster Beverage has been committed to product launches and innovation to boost growth. Management has been optimistic about the significant growth potential of its Monster Energy brand. Product launches across the Monster family are expected to have driven the overall top and bottom lines in the second quarter.
However, the company continues to experience higher operating expenses, which are likely to have dented gross and operating margins in the to-be-reported quarter. Higher input costs, geographical sales mix and increased promotions are expected to have weighed on gross margin. Meanwhile, freight inefficiencies along with higher aluminum can costs are expected to have hurt the operating margin performance in the second quarter.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Monster Beverage this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Monster Beverage has a Zacks Rank #3 and an Earnings ESP of 0.00%.
Stocks Poised to Beat Earnings Estimates
Here are a few companies you may want to consider, as our model shows that these have the right combination to post an earnings beat:
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Monster Beverage (MNST) to Post Q2 Earnings: What's in Store?
Monster Beverage Corporation (MNST - Free Report) is expected to report second-quarter 2021 results on Aug 5, after the closing bell. The beverage company is anticipated to have witnessed revenue and earnings growth in the to-be-reported quarter.
The Zacks Consensus Estimate for second-quarter earnings of 67 cents per share suggests a gain of 13.6% from 59 cents reported in the year-ago quarter. The consensus mark has been unchanged in the past 30 days. The consensus mark for revenues is pegged at $1.38 billion, indicating growth of 26.3% from that reported in the year-ago quarter.
In the last reported quarter, the company’s earnings missed the Zacks Consensus Estimate by 3.3%. However, it has delivered an earnings surprise of 7%, on average, in the trailing four quarters.
Monster Beverage Corporation Price and EPS Surprise
Monster Beverage Corporation price-eps-surprise | Monster Beverage Corporation Quote
Factors to Note
Monster Beverage has been benefiting from the continued strength in the energy drinks category, particularly the Monster Energy brand, which has been in good shape despite the industry challenges. The increased awareness for healthy living has led to a rise in demand for the company’s products, mainly energy and health drinks. Gains from strong demand for energy drinks are expected to have aided its second-quarter revenues.
The company is expected to have witnessed momentous growth in e-commerce, club store, mass merchandiser and grocery-related businesses. Foot traffic at its largest convenience and gas channel has been witnessing improved trends from the latter half of second-quarter 2020, which is likely to have continued in the to-be-reported quarter.
Monster Beverage has been committed to product launches and innovation to boost growth. Management has been optimistic about the significant growth potential of its Monster Energy brand. Product launches across the Monster family are expected to have driven the overall top and bottom lines in the second quarter.
However, the company continues to experience higher operating expenses, which are likely to have dented gross and operating margins in the to-be-reported quarter. Higher input costs, geographical sales mix and increased promotions are expected to have weighed on gross margin. Meanwhile, freight inefficiencies along with higher aluminum can costs are expected to have hurt the operating margin performance in the second quarter.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Monster Beverage this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Monster Beverage has a Zacks Rank #3 and an Earnings ESP of 0.00%.
Stocks Poised to Beat Earnings Estimates
Here are a few companies you may want to consider, as our model shows that these have the right combination to post an earnings beat:
Darling Ingredients Inc. (DAR - Free Report) has an Earnings ESP of +10.09% and it presently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Kellogg Company (K - Free Report) currently has an Earnings ESP of +0.61% and a Zacks Rank #3.
Tyson Foods, Inc. (TSN - Free Report) has an Earnings ESP of +11.17% and a Zacks Rank #3 at present.