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Things to Know Before Monster Beverage's (MNST) Q3 Earnings

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Monster Beverage Corporation (MNST - Free Report) is slated to release third-quarter 2019 results on Nov 7.

In the last reported quarter, the company recorded a negative earnings surprise of 5.4%. However, it delivered average positive earnings surprise of 5.6% in the trailing four quarters. On the top-line front, Monster Beverage outpaced the consensus mark in three of the last four quarters.

The Zacks Consensus Estimate for third-quarter earnings is pegged at 54 cents, suggesting 8% growth from the prior-year quarter’s reported figure. Notably, the consensus mark has been unchanged in the past 30 days.

Monster Beverage Corporation Price and EPS Surprise


Monster Beverage Corporation Price and EPS Surprise

Monster Beverage Corporation price-eps-surprise | Monster Beverage Corporation Quote

For quarterly revenues, the consensus estimate stands at $1.12 billion, which suggests growth of 10% from the year-ago quarter’s reported number.

Key Factors to Note

Monster Beverage has been witnessing solid momentum in the energy drinks business against a challenging industry backdrop. The momentum has been aided by the company’s wide range of energy drink brand offerings — including Monster Energy, Java Monster and Worx Energy.

Benefits from the product innovation strategy and regular product launches have been aiding the company’s top line. Monster Beverage’s solid international presence is likely to have worked in its favor. Notably, the company has been expanding international operations in various markets — including China, India, Africa and countries in the Middle East. Additionally, the broadening of its distribution network through its alliance with Coca-Cola’s bottlers globally is likely to have boosted the top line in the third quarter.

However, Monster Beverage has been grappling with input cost inflation and unfavorable product mix along with increased freight costs, which have been denting the gross margin for a while now. Currency translations are also concerning.

Zacks Model
Our proven model doesn’t 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 #4 (Sell) and Earnings ESP of -2.11%.

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:

e.l.f. Beauty Inc (ELF - Free Report) has an Earnings ESP of +10.71%. It currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Grocery Outlet Holding Corp. (GO - Free Report) presently has an Earnings ESP of +2.70% and a Zacks Rank #2.

Ollie's Bargain Outlet Holdings, Inc (OLLI - Free Report) currently has an Earnings ESP of +3.45% and a Zacks Rank #3.

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