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Know What's in Store for Monster Beverage (MNST) in Q4 Earnings
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Monster Beverage Corporation (MNST - Free Report) is expected to report fourth-quarter 2022 results on Feb 28, 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 fourth-quarter revenues is pegged at $1.59 billion, indicating growth of 11.5% from that reported in the year-ago quarter. The consensus estimate for earnings of 61 cents per share suggests growth of 1.7% from 60 cents reported in the year-ago quarter. The consensus mark has been unchanged in the past 30 days.
For 2022, the consensus mark for earnings is pegged at $2.28, suggesting a decline of 11.3% from the year-ago quarter’s reported figure. The consensus mark has been unchanged in the past 30 days. The Zacks Consensus Estimate for the company’s 2022 revenues is pegged at $6.4 billion, suggesting 15.3% growth from the prior-year quarter’s reported figure.
In the last reported quarter, the company posted an earnings surprise of 3.5%. It has delivered a negative earnings surprise of 7.5%, on average, in the trailing four quarters.
Monster Beverage Corporation Price and EPS Surprise
Monster Beverage has been gaining from the continued momentum in the energy drinks category, as well as product innovation plans. It has been on track with price increases to wean the ongoing cost pressures. These are likely to have boosted top and bottom-line performances in the fourth quarter.
On the last reported quarter’s earnings call, management was optimistic about strength in the global energy drinks category. The company has been poised to gain from growth in the Monster Energy family of brands, and strength in Strategic and Affordable energy brands. Gains from these segments are likely to get reflected in the company’s top line for the fourth quarter.
Monster Beverage has been committed to product launches and innovation to boost growth. The company has been introducing many products and expanding distribution in international markets, which have been aiding its performance.
On the last reported quarter’s earnings call, MNST stated that it intended to introduce the Predator brand in additional countries in APAC in the last quarter of 2022. Also, it expected to launch a number of products and product lines in the domestic and international markets in the last quarter of 2022. This is expected to have aided revenues in the fourth quarter.
MNST has been making efforts to overcome supply-chain challenges. Some of the notable actions taken to navigate through the challenges are decreasing its reliance on imported cans. The company has been purchasing aluminum cans from local sources in the United States and EMEA. MNST also rebuilt and increased finished product inventory levels across the United States and EMEA to reduce the excessive cost of long-distance freight to meet consumer demand. It is returning to its orbit strategy of producing closer to customers. This is expected to have cushioned the bottom line through improved margins.
Monster Beverage has been implementing pricing actions to overcome the ongoing cost pressures. The company has been on track with the mitigation of higher production and distribution costs through pricing actions and lowered promotional expenses. It implemented price increases for its products in the United States on Sep 1, 2022. It also brought effective price increases in certain international markets in the third quarter. Continued pricing actions are expected to have aided the company’s performance in the to-be-reported quarter.
However, Monster Beverage has been witnessing inflationary operational costs for aluminum cans, shipping, freight and other inputs. Elevated ingredients and other import costs, including secondary packaging materials and increased co-packing fees, are likely to have been concerning. These are expected to have dented the company’s margins to some extent in the to-be-reported quarter.
The company’s bottom line is expected to have been impacted by the global supply-chain challenges, including the lack of adequate shipping containers and port congestion. This, in turn, is likely to have led to shortages of certain ingredients and finished products. Also, the company has been reeling under a significant rise in distribution expenses, including increased fuel, freight and warehousing costs.
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 #2 and an Earnings ESP of 0.00%.
Stocks With Favorable Combination
Here are some companies that you may want to consider, as our model shows that these have the right combination of elements to deliver an earnings beat.
Fomento Economico Mexicano (FMX - Free Report) , alias FEMSA, has an Earnings ESP of +13.61% and currently carries a Zacks Rank of 2. The company is likely to register top and bottom-line growth when it reports fourth-quarter 2022 results. The consensus mark for FMX’s quarterly revenues is pegged at $9.1 billion, which suggests 24.1% growth from the figure reported in the prior-year quarter.
The consensus mark for FEMSA’s quarterly earnings has moved up 7.1% in the past 30 days to $1.35 per share. The consensus estimate for FMX’s fourth-quarter earnings suggests growth of 48.4% from the year-ago quarter’s reported figure. FMX has delivered a negative earnings beat of 15%, on average, in the trailing four quarters.
The J. M. Smucker Co. (SJM - Free Report) currently has an Earnings ESP of +1.97% and a Zacks Rank #3. SJM is likely to register top-line growth when it reports the third-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for its quarterly revenues is pegged at $2.2 billion, which suggests growth of 7.8% from the figure reported in the prior-year quarter.
However, the Zacks Consensus Estimate for J. M. Smucker's quarterly earnings has moved down by a penny in the past seven days to $2.13 per share, suggesting a decline of 8.6% from the year-ago quarter’s reported number. SJM has delivered an earnings beat of 18.5%, on average, in the trailing four quarters.
Vital Farms (VITL - Free Report) currently has an Earnings ESP of +80.00% and a Zacks Rank of 3. The company is expected to register top and bottom-line growth when it reports the fourth-quarter 2022 numbers. The Zacks Consensus Estimate for VITL’s quarterly revenues is pegged at $102.5 million, which suggests growth of 32.3% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for Vital Farms’ quarterly earnings has moved up 150% in the past 30 days to 5 cents per share. The consensus estimate for VITL suggests 155.6% growth from a loss of 9 cents reported in the year-ago quarter. VITL has delivered an earnings beat of 58.3%, on average, in the trailing four quarters.
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Know What's in Store for Monster Beverage (MNST) in Q4 Earnings
Monster Beverage Corporation (MNST - Free Report) is expected to report fourth-quarter 2022 results on Feb 28, 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 fourth-quarter revenues is pegged at $1.59 billion, indicating growth of 11.5% from that reported in the year-ago quarter. The consensus estimate for earnings of 61 cents per share suggests growth of 1.7% from 60 cents reported in the year-ago quarter. The consensus mark has been unchanged in the past 30 days.
For 2022, the consensus mark for earnings is pegged at $2.28, suggesting a decline of 11.3% from the year-ago quarter’s reported figure. The consensus mark has been unchanged in the past 30 days. The Zacks Consensus Estimate for the company’s 2022 revenues is pegged at $6.4 billion, suggesting 15.3% growth from the prior-year quarter’s reported figure.
In the last reported quarter, the company posted an earnings surprise of 3.5%. It has delivered a negative earnings surprise of 7.5%, 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 gaining from the continued momentum in the energy drinks category, as well as product innovation plans. It has been on track with price increases to wean the ongoing cost pressures. These are likely to have boosted top and bottom-line performances in the fourth quarter.
On the last reported quarter’s earnings call, management was optimistic about strength in the global energy drinks category. The company has been poised to gain from growth in the Monster Energy family of brands, and strength in Strategic and Affordable energy brands. Gains from these segments are likely to get reflected in the company’s top line for the fourth quarter.
Monster Beverage has been committed to product launches and innovation to boost growth. The company has been introducing many products and expanding distribution in international markets, which have been aiding its performance.
On the last reported quarter’s earnings call, MNST stated that it intended to introduce the Predator brand in additional countries in APAC in the last quarter of 2022. Also, it expected to launch a number of products and product lines in the domestic and international markets in the last quarter of 2022. This is expected to have aided revenues in the fourth quarter.
MNST has been making efforts to overcome supply-chain challenges. Some of the notable actions taken to navigate through the challenges are decreasing its reliance on imported cans. The company has been purchasing aluminum cans from local sources in the United States and EMEA. MNST also rebuilt and increased finished product inventory levels across the United States and EMEA to reduce the excessive cost of long-distance freight to meet consumer demand. It is returning to its orbit strategy of producing closer to customers. This is expected to have cushioned the bottom line through improved margins.
Monster Beverage has been implementing pricing actions to overcome the ongoing cost pressures. The company has been on track with the mitigation of higher production and distribution costs through pricing actions and lowered promotional expenses. It implemented price increases for its products in the United States on Sep 1, 2022. It also brought effective price increases in certain international markets in the third quarter. Continued pricing actions are expected to have aided the company’s performance in the to-be-reported quarter.
However, Monster Beverage has been witnessing inflationary operational costs for aluminum cans, shipping, freight and other inputs. Elevated ingredients and other import costs, including secondary packaging materials and increased co-packing fees, are likely to have been concerning. These are expected to have dented the company’s margins to some extent in the to-be-reported quarter.
The company’s bottom line is expected to have been impacted by the global supply-chain challenges, including the lack of adequate shipping containers and port congestion. This, in turn, is likely to have led to shortages of certain ingredients and finished products. Also, the company has been reeling under a significant rise in distribution expenses, including increased fuel, freight and warehousing costs.
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 #2 and an Earnings ESP of 0.00%.
Stocks With Favorable Combination
Here are some companies that you may want to consider, as our model shows that these have the right combination of elements to deliver an earnings beat.
Fomento Economico Mexicano (FMX - Free Report) , alias FEMSA, has an Earnings ESP of +13.61% and currently carries a Zacks Rank of 2. The company is likely to register top and bottom-line growth when it reports fourth-quarter 2022 results. The consensus mark for FMX’s quarterly revenues is pegged at $9.1 billion, which suggests 24.1% growth from the figure reported in the prior-year quarter.
You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus mark for FEMSA’s quarterly earnings has moved up 7.1% in the past 30 days to $1.35 per share. The consensus estimate for FMX’s fourth-quarter earnings suggests growth of 48.4% from the year-ago quarter’s reported figure. FMX has delivered a negative earnings beat of 15%, on average, in the trailing four quarters.
The J. M. Smucker Co. (SJM - Free Report) currently has an Earnings ESP of +1.97% and a Zacks Rank #3. SJM is likely to register top-line growth when it reports the third-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for its quarterly revenues is pegged at $2.2 billion, which suggests growth of 7.8% from the figure reported in the prior-year quarter.
However, the Zacks Consensus Estimate for J. M. Smucker's quarterly earnings has moved down by a penny in the past seven days to $2.13 per share, suggesting a decline of 8.6% from the year-ago quarter’s reported number. SJM has delivered an earnings beat of 18.5%, on average, in the trailing four quarters.
Vital Farms (VITL - Free Report) currently has an Earnings ESP of +80.00% and a Zacks Rank of 3. The company is expected to register top and bottom-line growth when it reports the fourth-quarter 2022 numbers. The Zacks Consensus Estimate for VITL’s quarterly revenues is pegged at $102.5 million, which suggests growth of 32.3% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for Vital Farms’ quarterly earnings has moved up 150% in the past 30 days to 5 cents per share. The consensus estimate for VITL suggests 155.6% growth from a loss of 9 cents reported in the year-ago quarter. VITL has delivered an earnings beat of 58.3%, on average, in the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.