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Monster Beverage Gears Up for Q1 Earnings: Here's What You Should Know

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Monster Beverage Corporation (MNST - Free Report) is expected to report first-quarter 2025 results on May 8, after the closing bell. The beverage company is anticipated to have witnessed revenue and earnings growth.

The Zacks Consensus Estimate for revenues is pegged at $1.98 billion, indicating growth of 4.3% from the figure reported in the year-ago quarter. The consensus estimate for earnings of 46 cents per share implies a rise of 9.5% from the year-ago quarter’s actual. The consensus mark has been stable in the past 30 days.

In the last reported quarter, the company registered a negative earnings surprise of 5%. It has delivered an average negative earnings surprise of 5.8% in the trailing four quarters.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

Key Factors to Note Ahead of MNST’s Results

Monster Beverage’s quarterly performance is likely to have benefited from continued strength in its energy drinks category. The company has been gaining from the expansion of its energy drinks category and product launches. MNST is expected to have witnessed continued positive trends in the Monster Energy family of brands. It has been focused on the expansion of the energy drinks category and product launches. The Zacks Consensus Estimate for net sales in the Monster Energy Drinks segment is pegged at $1.8 billion, indicating year-over-year growth of almost 4%.

The company has been focused on the expansion of its strong distribution network across international markets. In addition, pricing actions, lower input expenses and improved cost efficiencies are likely to have bolstered margins. It has been reviewing opportunities for price increases. The Zacks Consensus Estimate for net sales outside the United States is pegged at $730 million, indicating a year-over-year rise of 5.3%. The aforesaid strengths are likely to have boosted the bottom and top-line performances.

On the flip side, MNST has been grappling with high operating expenses, due to higher costs associated with sponsorships, endorsements and payroll. Adverse currency rates also continue to pose challenges.

What the Zacks Model Unveils for MNST

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 before they’re reported with our Earnings ESP Filter.

Monster Beverage has an Earnings ESP of -1.02% and a Zacks Rank of 3.

Valuation Picture for MNST

From a valuation perspective, Monster Beverage stock is trading at a premium relative to the industry benchmarks. With a forward 12-month price-to-earnings ratio of 31.38x, the stock is trading above the Beverages - Soft drinks industry’s average of 18.73x. The stock is trading above its median of 28.08x

The recent market movements show that MNST’s shares have gained 11.3% in the past six months compared with the industry's 3.1% growth.

Stocks With the Favorable Combination

Here are some companies, which according to our model, have the right combination of elements to beat on earnings this reporting cycle.

Celsius Holdings, Inc. (CELH - Free Report) currently has an Earnings ESP of +2.91% and a Zacks Rank of 3. The Zacks Consensus Estimate for first-quarter 2025 earnings per share (EPS) is pegged at 20 cents, which implies a 25.9% year-over-year decrease. You can see the complete list of today’s Zacks #1 Rank stocks here.

The consensus estimate for Celsius Holdings’ quarterly revenues is pegged at $341.7 million, which indicates a decline of 4% from the figure reported in the prior-year quarter. CELH has a trailing negative four-quarter earnings surprise of roughly 4%, on average.

Ollie's Bargain Outlet Holdings, Inc. (OLLI - Free Report) currently has an Earnings ESP of +1.64% and a Zacks Rank of 3. The Zacks Consensus Estimate for first-quarter fiscal 2025 EPS is pegged at 70 cents, which implies a 4.1% decrease year over year. 

The consensus mark for Ollie's Bargain’s quarterly revenues is pegged at $564.2 million, which indicates growth of 10.9% from the figure reported in the prior-year quarter. OLLI delivered a trailing four-quarter earnings surprise of 3.3%, on average.

The J. M. Smucker Company (SJM - Free Report) currently has an Earnings ESP of +4.52% and a Zacks Rank of 3. The consensus estimate for J. M. Smucker’s quarterly revenues is pegged at $2.2 billion, which indicates a drop of about 1% from the figure reported in the prior-year quarter. SJM delivered a trailing four-quarter earnings surprise of 11.7%, on average.

The Zacks Consensus Estimate for fourth-quarter fiscal 2025 EPS is pegged at $2.25, which implies a 15.4% decrease year over year.

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