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Monster Beverage Corporation (MNST - Free Report) delivered fourth-quarter 2023 results, wherein the top and bottom lines came below the Zacks Consensus Estimate. However, both metrics improved year over year on gains from the expansion of the energy drinks category and product launches.
Monster Beverage’s adjusted earnings of 38 cents per share missed the Zacks Consensus Estimate of 39 cents. The figure advanced 31% year over year.
Net sales of $1.73 billion improved 14.4% year over year but lagged the consensus estimate of $1.75 billion. Unfavorable currency translations hurt net sales by $27.1 million in the reported quarter. On a currency-adjusted basis, net sales rose 16.1%.
Net sales to customers outside the United States rose 17.4% to $637 million, representing about 37% of the total net sales. On a currency-adjusted basis, sales to customers outside the United States improved 22.4%.
We note that shares of this current Zacks Rank #3 (Hold) company have gained 5.9% in the past three months against the industry’s 4.2% decline.
Segmental Performance
Monster Energy Drinks: The segment includes Monster Energy drinks, Reign Total Body Fuel high-performance energy drinks and True North Pure Energy Seltzers. The segment’s net sales increased 15.1% year over year to $1.60 billion. The segment’s sales included a negative impact of $18.8 million from adverse currency rates. On a currency-adjusted basis, net sales for the segment rose 16.5%.
Strategic Brands: In addition to the affordable energy drink brands, the segment includes a range of energy drink brands acquired from Coca-Cola. The segment’s net sales dipped 1.3% year over year to $91.8 million in the fourth quarter. Currency headwinds hurt the segment’s sales by $8.3 million. On a currency-adjusted basis, net sales for the segment rose 7.7%.
Alcohol Brands: Net sales for the segment, which includes various craft beers and hard seltzers purchased as part of the CANarchy transaction on Feb 17, 2022, jumped 30.6% to $35.2 million for the fourth quarter.
Other: Net sales for the segment, which includes some products of American Fruits & Flavors sold to independent third parties (AFF Third-Party Products), grew 6.2% year over year to $4.9 million.
Costs & Margins
The cost of sales was $791.7 million, up 8.7% year over year. The company’s fourth-quarter 2023 gross margin expanded 240 basis points (bps) year over year to 54.2%, driven by pricing actions, lower freight-in costs and reduced input costs.
Operating expenses grew 29.3% year over year to $504.4 million. As a percentage of sales, operating expenses expanded 340 bps to 29.2%. Selling expenses, as a percentage of net sales, increased 60 bps year over year to 10.2%.
Distribution costs, as a percentage of net sales, contracted 40 bps to 4.6%. General and administrative expenses, as a percentage of net sales, expanded 320 bps year over year to 14.3%.
Operating income of $434 million rose 10% year over year while the metric on an adjusted basis grew 21.4% to $478.9 million. The upside was driven by an increase in sales and the gross margin.
Other Financials
Monster Beverage ended fourth-quarter 2023 with cash and cash equivalents of $2.30 billion and total stockholders' equity of $8.24 billion. Short-term investments, as of Dec 31, 2023, were $955.6 million.
In the reported quarter, the company bought back 0.8 million shares worth $43.2 million. As of Feb 27, 2024, it had $642.4 million remaining under the previously authorized share repurchase plan.
Stocks to Consider
We have highlighted some better-ranked stocks from the broader Consumer Staples space, namely Church & Dwight Co. (CHD - Free Report) , Colgate-Palmolive (CL - Free Report) and InterParfums (IPAR - Free Report) .
Church & Dwight, offering a broad range of household, personal care and specialty products, currently carries a Zacks Rank #2 (Buy). CHD has a trailing four-quarter earnings surprise of 10.1%, on average. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Church & Dwight’s current financial year’s sales and earnings suggests growth of 8.7% and 6.4%, respectively, from the year-ago numbers.
Colgate, a leading consumer goods company, currently carries a Zacks Rank of 2. CL has a trailing four-quarter earnings surprise of 4.2%, on average.
The Zacks Consensus Estimate for CL’s current financial-year sales and earnings suggest growth of 3.5% and 7.7%, respectively, from the year-ago reported figures.
Inter Parfums is engaged in the manufacturing, distribution and marketing of a wide range of fragrances and related products. It currently carries a Zacks Rank of 2.
The Zacks Consensus Estimate for IPAR’s current financial-year sales and earnings indicates advancements of 20.9% and 20.2%, respectively, from the prior-year figures. It has a trailing four-quarter earnings surprise of 45.7%, on average.
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Monster Beverage (MNST) Q4 Earnings Miss, Sales Rise Y/Y
Monster Beverage Corporation (MNST - Free Report) delivered fourth-quarter 2023 results, wherein the top and bottom lines came below the Zacks Consensus Estimate. However, both metrics improved year over year on gains from the expansion of the energy drinks category and product launches.
Monster Beverage’s adjusted earnings of 38 cents per share missed the Zacks Consensus Estimate of 39 cents. The figure advanced 31% year over year.
Net sales of $1.73 billion improved 14.4% year over year but lagged the consensus estimate of $1.75 billion. Unfavorable currency translations hurt net sales by $27.1 million in the reported quarter. On a currency-adjusted basis, net sales rose 16.1%.
Monster Beverage Corporation Price and Consensus
Monster Beverage Corporation price-consensus-chart | Monster Beverage Corporation Quote
Net sales to customers outside the United States rose 17.4% to $637 million, representing about 37% of the total net sales. On a currency-adjusted basis, sales to customers outside the United States improved 22.4%.
We note that shares of this current Zacks Rank #3 (Hold) company have gained 5.9% in the past three months against the industry’s 4.2% decline.
Segmental Performance
Monster Energy Drinks: The segment includes Monster Energy drinks, Reign Total Body Fuel high-performance energy drinks and True North Pure Energy Seltzers. The segment’s net sales increased 15.1% year over year to $1.60 billion. The segment’s sales included a negative impact of $18.8 million from adverse currency rates. On a currency-adjusted basis, net sales for the segment rose 16.5%.
Strategic Brands: In addition to the affordable energy drink brands, the segment includes a range of energy drink brands acquired from Coca-Cola. The segment’s net sales dipped 1.3% year over year to $91.8 million in the fourth quarter. Currency headwinds hurt the segment’s sales by $8.3 million. On a currency-adjusted basis, net sales for the segment rose 7.7%.
Alcohol Brands: Net sales for the segment, which includes various craft beers and hard seltzers purchased as part of the CANarchy transaction on Feb 17, 2022, jumped 30.6% to $35.2 million for the fourth quarter.
Other: Net sales for the segment, which includes some products of American Fruits & Flavors sold to independent third parties (AFF Third-Party Products), grew 6.2% year over year to $4.9 million.
Costs & Margins
The cost of sales was $791.7 million, up 8.7% year over year. The company’s fourth-quarter 2023 gross margin expanded 240 basis points (bps) year over year to 54.2%, driven by pricing actions, lower freight-in costs and reduced input costs.
Operating expenses grew 29.3% year over year to $504.4 million. As a percentage of sales, operating expenses expanded 340 bps to 29.2%. Selling expenses, as a percentage of net sales, increased 60 bps year over year to 10.2%.
Distribution costs, as a percentage of net sales, contracted 40 bps to 4.6%. General and administrative expenses, as a percentage of net sales, expanded 320 bps year over year to 14.3%.
Operating income of $434 million rose 10% year over year while the metric on an adjusted basis grew 21.4% to $478.9 million. The upside was driven by an increase in sales and the gross margin.
Other Financials
Monster Beverage ended fourth-quarter 2023 with cash and cash equivalents of $2.30 billion and total stockholders' equity of $8.24 billion. Short-term investments, as of Dec 31, 2023, were $955.6 million.
In the reported quarter, the company bought back 0.8 million shares worth $43.2 million. As of Feb 27, 2024, it had $642.4 million remaining under the previously authorized share repurchase plan.
Stocks to Consider
We have highlighted some better-ranked stocks from the broader Consumer Staples space, namely Church & Dwight Co. (CHD - Free Report) , Colgate-Palmolive (CL - Free Report) and Inter Parfums (IPAR - Free Report) .
Church & Dwight, offering a broad range of household, personal care and specialty products, currently carries a Zacks Rank #2 (Buy). CHD has a trailing four-quarter earnings surprise of 10.1%, on average. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Church & Dwight’s current financial year’s sales and earnings suggests growth of 8.7% and 6.4%, respectively, from the year-ago numbers.
Colgate, a leading consumer goods company, currently carries a Zacks Rank of 2. CL has a trailing four-quarter earnings surprise of 4.2%, on average.
The Zacks Consensus Estimate for CL’s current financial-year sales and earnings suggest growth of 3.5% and 7.7%, respectively, from the year-ago reported figures.
Inter Parfums is engaged in the manufacturing, distribution and marketing of a wide range of fragrances and related products. It currently carries a Zacks Rank of 2.
The Zacks Consensus Estimate for IPAR’s current financial-year sales and earnings indicates advancements of 20.9% and 20.2%, respectively, from the prior-year figures. It has a trailing four-quarter earnings surprise of 45.7%, on average.