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Here's How Monster Beverage (MNST) Looks Ahead of Q4 Earnings
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Monster Beverage Corporation (MNST - Free Report) is expected to report fourth-quarter 2021 results on Feb 24, after the closing bell. The beverage company is anticipated to have witnessed revenue growth in the to-be-reported quarter.
The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $1.32 billion, indicating growth of 10.4% from that reported in the year-ago quarter. The consensus mark for 2021 revenues is pinned at $5.44 billion, indicating growth of 18.3% from the prior-year reported figure.
The consensus estimate for earnings of 60 cents per share suggests a decline of 3.2% from 62 cents reported in the year-ago quarter. The consensus mark has been unchanged in the past 30 days. The consensus mark for 2021 earnings is pegged at $2.57 per share, indicating growth of 8.4% from the prior-year reported figure.
In the last reported quarter, the company witnessed a negative earnings surprise of 3.1%. It has delivered an earnings surprise of 2.7%, on average, in the trailing four quarters.
Monster Beverage Corporation Price and EPS Surprise
Monster Beverage has been experiencing continued strength in its energy drinks category, particularly the Monster Energy brand, driving its performance. Management is optimistic about strength in the energy drinks category, with the Monster Energy brand growing significantly. Gains from strong demand for energy drinks are likely to have aided Monster Beverage's top line in the fourth quarter.
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, which is anticipated 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 company’s overall top and bottom lines in the to-be-reported quarter.
However, Monster Beverage has been facing hardships due to logistics and supply-chain challenges, which weighed on margins in the fourth quarter. The company is expected to have witnessed shortages in its aluminum can requirements in the United States and EMEA, owing to its higher cost of importing aluminum cans and elevated aluminum commodity pricing.
The company has also been witnessing delays in the procurement of certain ingredients, both domestically and internationally. This has led to heightened challenges in meeting the increased consumer demand in North America and EMEA. Continued supply-chain disruptions are expected to get reflected in the company’s fourth-quarter results. These are likely to have hurt its margins in the to-be-reported quarter.
Monster Beverage has also been facing freight inefficiencies, port congestion, insufficient co-packing capacity and delays. It is likely to have experienced elevated ingredient and other input costs, including shipping and freight, labor, trucking, fuel, co-packing fees, secondary packaging materials, and increased outbound freight costs. These are expected to have resulted in increased costs of sales and higher operating costs in the fourth quarter. These headwinds are expected to have led to higher costs of sales, as well as increased operating expenses in the fourth quarter, impacting both gross and operating margins.
On the last reported quarter’s earnings call, management indicated that it had taken steps to source additional quantities of aluminum cans in excess of its contracted volumes from the United States, South America and Asia. It has also entered supply agreements with two suppliers of aluminum cans in the United States, which are anticipated to be operational in the fourth quarter of 2021. However, management anticipated continued logistical issues in the fourth quarter, including shortages of shipping containers and global port congestion to delay the arrival of imported cans.
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. But that’s not the case here. 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 -0.42%.
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:
Lowe's Companies (LOW - Free Report) currently has an Earnings ESP of +6.81% and a Zacks Rank of 2. The company is likely to register an increase in the top and bottom lines when it reports fourth-quarter fiscal 2021 results. The consensus mark for LOW’s quarterly revenues is pegged at $20.8 billion, which suggests a rise of 2.5% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Lowe's Companies’ earnings has been unchanged at $1.71 per share in the past 30 days. The consensus estimate indicates a 28.6% increase from $1.33 reported in the year-ago quarter.
Grocery Outlet (GO - Free Report) currently has an Earnings ESP of +8.45% and a Zacks Rank of 3. The company is likely to register a decline in the top and bottom lines when it reports fourth-quarter 2021 numbers. The consensus mark for GO’s quarterly earnings has been unchanged in the past 30 days at 20 cents per share. However, the consensus estimate suggests a 16.7% decline from the year-ago quarter’s reported number.
The Zacks Consensus Estimate for Grocery Outlet’s quarterly revenues is pegged at $774.2 million, which suggests a decline of 4% from the figure reported in the prior-year quarter.
Foot Locker (FL - Free Report) currently has an Earnings ESP of +8.80% and a Zacks Rank of 3. The company is likely to register top-line growth when it reports fourth-quarter fiscal 2021 earnings. The consensus mark for FL’s quarterly revenues is pegged at $2.35 billion, which suggests 7.3% growth from the figure reported in the prior-year quarter.
The consensus mark for FL’s quarterly earnings has moved up by a penny in the past seven days to $1.47 per share. However, the consensus estimate suggests a decline of 5.2% from the year-ago quarter.
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Here's How Monster Beverage (MNST) Looks Ahead of Q4 Earnings
Monster Beverage Corporation (MNST - Free Report) is expected to report fourth-quarter 2021 results on Feb 24, after the closing bell. The beverage company is anticipated to have witnessed revenue growth in the to-be-reported quarter.
The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $1.32 billion, indicating growth of 10.4% from that reported in the year-ago quarter. The consensus mark for 2021 revenues is pinned at $5.44 billion, indicating growth of 18.3% from the prior-year reported figure.
The consensus estimate for earnings of 60 cents per share suggests a decline of 3.2% from 62 cents reported in the year-ago quarter. The consensus mark has been unchanged in the past 30 days. The consensus mark for 2021 earnings is pegged at $2.57 per share, indicating growth of 8.4% from the prior-year reported figure.
In the last reported quarter, the company witnessed a negative earnings surprise of 3.1%. It has delivered an earnings surprise of 2.7%, on average, in the trailing four quarters.
Monster Beverage Corporation Price and EPS Surprise
Monster Beverage Corporation price-eps-surprise | Monster Beverage Corporation Quote
Key Factors to Note
Monster Beverage has been experiencing continued strength in its energy drinks category, particularly the Monster Energy brand, driving its performance. Management is optimistic about strength in the energy drinks category, with the Monster Energy brand growing significantly. Gains from strong demand for energy drinks are likely to have aided Monster Beverage's top line in the fourth quarter.
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, which is anticipated 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 company’s overall top and bottom lines in the to-be-reported quarter.
However, Monster Beverage has been facing hardships due to logistics and supply-chain challenges, which weighed on margins in the fourth quarter. The company is expected to have witnessed shortages in its aluminum can requirements in the United States and EMEA, owing to its higher cost of importing aluminum cans and elevated aluminum commodity pricing.
The company has also been witnessing delays in the procurement of certain ingredients, both domestically and internationally. This has led to heightened challenges in meeting the increased consumer demand in North America and EMEA. Continued supply-chain disruptions are expected to get reflected in the company’s fourth-quarter results. These are likely to have hurt its margins in the to-be-reported quarter.
Monster Beverage has also been facing freight inefficiencies, port congestion, insufficient co-packing capacity and delays. It is likely to have experienced elevated ingredient and other input costs, including shipping and freight, labor, trucking, fuel, co-packing fees, secondary packaging materials, and increased outbound freight costs. These are expected to have resulted in increased costs of sales and higher operating costs in the fourth quarter. These headwinds are expected to have led to higher costs of sales, as well as increased operating expenses in the fourth quarter, impacting both gross and operating margins.
On the last reported quarter’s earnings call, management indicated that it had taken steps to source additional quantities of aluminum cans in excess of its contracted volumes from the United States, South America and Asia. It has also entered supply agreements with two suppliers of aluminum cans in the United States, which are anticipated to be operational in the fourth quarter of 2021. However, management anticipated continued logistical issues in the fourth quarter, including shortages of shipping containers and global port congestion to delay the arrival of imported cans.
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. But that’s not the case here. 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 -0.42%.
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:
Lowe's Companies (LOW - Free Report) currently has an Earnings ESP of +6.81% and a Zacks Rank of 2. The company is likely to register an increase in the top and bottom lines when it reports fourth-quarter fiscal 2021 results. The consensus mark for LOW’s quarterly revenues is pegged at $20.8 billion, which suggests a rise of 2.5% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Lowe's Companies’ earnings has been unchanged at $1.71 per share in the past 30 days. The consensus estimate indicates a 28.6% increase from $1.33 reported in the year-ago quarter.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Grocery Outlet (GO - Free Report) currently has an Earnings ESP of +8.45% and a Zacks Rank of 3. The company is likely to register a decline in the top and bottom lines when it reports fourth-quarter 2021 numbers. The consensus mark for GO’s quarterly earnings has been unchanged in the past 30 days at 20 cents per share. However, the consensus estimate suggests a 16.7% decline from the year-ago quarter’s reported number.
The Zacks Consensus Estimate for Grocery Outlet’s quarterly revenues is pegged at $774.2 million, which suggests a decline of 4% from the figure reported in the prior-year quarter.
Foot Locker (FL - Free Report) currently has an Earnings ESP of +8.80% and a Zacks Rank of 3. The company is likely to register top-line growth when it reports fourth-quarter fiscal 2021 earnings. The consensus mark for FL’s quarterly revenues is pegged at $2.35 billion, which suggests 7.3% growth from the figure reported in the prior-year quarter.
The consensus mark for FL’s quarterly earnings has moved up by a penny in the past seven days to $1.47 per share. However, the consensus estimate suggests a decline of 5.2% from the year-ago quarter.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.