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Monster Beverage Co. (MNST) Short Interest Down 25.3% in March
By: MarketBeat | March 30, 2022
• Monster Beverage Co. (NASDAQ:MNST - Get Rating) saw a large decrease in short interest in March. As of March 15th, there was short interest totalling 3,610,000 shares, a decrease of 25.3% from the February 28th total of 4,830,000 shares. Based on an average trading volume of 2,760,000 shares, the short-interest ratio is currently 1.3 days. Currently, 1.0% of the company's stock are sold short...
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Monster Beverage Expected to Announce Quarterly Sales of $1.42 Billion
By: MarketBeat | March 24, 2022
• Wall Street analysts expect that Monster Beverage Co. (NASDAQ:MNST - Get Rating) will announce sales of $1.42 billion for the current fiscal quarter, Zacks Investment Research reports. Six analysts have provided estimates for Monster Beverage's earnings. The lowest sales estimate is $1.38 billion and the highest is $1.45 billion. Monster Beverage reported sales of $1.24 billion during the same quarter last year, which would suggest a positive year over year growth rate of 14.5%...
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Monster Beverage Co. (MNST) Short Interest Update
By: MarketBeat | March 8, 2022
• Monster Beverage Co. (NASDAQ:MNST - Get Rating) saw a significant increase in short interest in the month of February. As of February 15th, there was short interest totalling 4,560,000 shares, an increase of 26.7% from the January 31st total of 3,600,000 shares. Currently, 1.2% of the shares of the company are short sold. Based on an average trading volume of 2,600,000 shares, the short-interest ratio is currently 1.8 days...
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Zacks: Brokerages Anticipate Monster Beverage Co. (MNST) Will Post Quarterly Sales of $1.42 Billion
By: MarketBeat | March 3, 2022
• Equities research analysts forecast that Monster Beverage Co. (NASDAQ:MNST - Get Rating) will post $1.42 billion in sales for the current fiscal quarter, Zacks reports. Six analysts have issued estimates for Monster Beverage's earnings, with estimates ranging from $1.38 billion to $1.45 billion. Monster Beverage reported sales of $1.24 billion during the same quarter last year, which indicates a positive year-over-year growth rate of 14.5%. The firm is expected to report its next quarterly earnings report on Thursday, May 5th...
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Monster Beverage (MNST) PT Lowered to $105.00
By: MarketBeat | February 25, 2022
• Monster Beverage (NASDAQ:MNST - Get Rating) had its price objective decreased by analysts at Deutsche Bank Aktiengesellschaft from $107.00 to $105.00 in a research report issued to clients and investors on Friday, Briefing.com reports. The firm presently has a "buy" rating on the stock. Deutsche Bank Aktiengesellschaft's target price suggests a potential upside of 24.25% from the stock's current price...
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Monster Beverage Corp (MNST) Stock to Buy for March 2022
By: Lucas Downey | February 24, 2022
• There are some great stocks being sold right now (not all in tech either). They’re fundamentally sound companies with good histories, which means discounts for long-term investors.
Stocks are still getting slammed in 2022, especially technology stocks. Of the tech stocks my research firm MAPsignals follows, nearly all the recent activity has been selling (a whopping 92% of all tech signals):
See the red bars? Those are stocks we believe are getting sold. When red bars run rampant, good names can get crushed. They can become what I call “oversold.” When this happens, even great stocks can get caught in the selling rush – and that can mean opportunity.
There are some great stocks being sold right now (not all in tech either). They’re fundamentally sound companies with good histories, which means discounts for long-term investors. Here are five stocks seeing lots of red that appear to be near-term oversold: CRM, INTU, LULU, MNST & AMD.
Number four on the list is Monster Beverage Corporation (MNST), which is an energy drink company.
Here are the technicals important to me:
• 1-month performance (-6.3%)
• Historical Big Money signals
Recently, it’s been a steep downward slide, with more Big Money selling than buying:
But Monster Beverage is a cash magnet and Big Money favorite. Below are the Big Money Top 20 buy signals for MNST since 2015:
Source: www.MAPsignals.com
Let’s look under the hood. Despite the price slide, Monster Beverage has been growing earnings and sales at double-digit rates:
• 3-year EPS growth rate (+22.6%)
• 3-year sales growth rate = (+10.9%)
The Bottom Line
CRM, INTU, LULU, MNST & AMD represent the top oversold stocks for March 2022. They’ve been sold a lot lately…perhaps too much. Strong, fundamentally-sound stocks seeing near-term sell signals are worthy of extra attention because of their long-term potential.
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Monster Beverage (MNST) Sets New 52-Week Low After Analyst Downgrade
By: MarketBeat | February 19, 2022
• Monster Beverage Co. (NASDAQ:MNST) shares hit a new 52-week low during mid-day trading on Friday after Credit Suisse Group lowered their price target on the stock from $119.00 to $110.00. Credit Suisse Group currently has an outperform rating on the stock. Monster Beverage traded as low as $80.91 and last traded at $81.22, with a volume of 35213 shares traded. The stock had previously closed at $82.14...
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Monster Beverage (MNST) Price Target Cut to $110.00 by Analysts at Credit Suisse Group
By: MarketBeat | February 18, 2022
• Monster Beverage (NASDAQ:MNST) had its price objective cut by equities research analysts at Credit Suisse Group from $119.00 to $110.00 in a research note issued to investors on Friday, The Fly reports. Credit Suisse Group's target price suggests a potential upside of 33.92% from the company's previous close...
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$MNST Monster Beverage with back to back days of unusual options flow
By: unusualwhales.com | February 16, 2022
• $MNST Monster Beverage with back to back days of unusual options flow. Reportedly in talks with $STZ regarding a merger.
Feb 15:
1) 86c 2/25 opened, 90c 6/17 opened
Feb 16:
2) (POSSIBLE) 70p/90c 3/18 bull combo
3) 90/100c 4/1 bull call spread
4) typically a thinly traded stock.
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Monster Beverage (MNST) Stock Rises Amid Merger Talks
By: Schaeffer's Investment Research | February 15, 2022
• Monster Beverage and Constellation Brands could merge within weeks
• MNST is now contending with its -10% year-to-date level
The shares of Monster Beverage Corporation (NASDAQ:MNST) are up 2.2% at $84.40 at last check, amid progressing merger talks between the energy drink giant and Corona brewer Constellation Brands (STZ). In a report from Bloomberg, anonymous people familiar with the matter said an agreement could be made within weeks depending on how smoothly talks proceed.
On the charts, Monster Beverage stock has taken an extended breather since hitting a Jan. 5, five-month high of $98.73. Yesterday's rally was cut short by the 20-day moving average, while the $82.50 level has stepped up as a layer of support. Year over year, MNST is down 10%.
Options traders are more put-biased, according to Monster Beverage stock's 10-day put/call volume ratio of 2.33 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio sits in the 98th percentile of its annual range, indicating a much stronger-than-usual preference for puts over the last two weeks.
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Bank of America's shopping list for dip buyers
By: Markets & Mayhem | January 25, 2022
• Bank of America's shopping list for dip buyers
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Monster Beverage Co. (MNST) Receives Average Rating of "Buy" from Analysts
By: MarketBeat | January 23, 2022
• Monster Beverage Co. (NASDAQ:MNST) has been given a consensus recommendation of "Buy" by the eleven ratings firms that are presently covering the firm, MarketBeat.com reports. Two equities research analysts have rated the stock with a hold recommendation and nine have assigned a buy recommendation to the company. The average 1 year target price among brokerages that have covered the stock in the last year is $106.56...
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$1.32 Billion in Sales Expected for Monster Beverage Co. (MNST) This Quarter
By: MarketBeat | January 22, 2022
• Equities research analysts expect Monster Beverage Co. (NASDAQ:MNST) to report sales of $1.32 billion for the current fiscal quarter, according to Zacks Investment Research. Five analysts have provided estimates for Monster Beverage's earnings. The lowest sales estimate is $1.31 billion and the highest is $1.34 billion. Monster Beverage posted sales of $1.20 billion during the same quarter last year, which suggests a positive year over year growth rate of 10%. The company is expected to issue its next quarterly earnings report on Thursday, February 24th...
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Jefferies Financial Group Equities Analysts Raise Earnings Estimates for Monster Beverage Co. (MNST)
By: MarketBeat | January 13, 2022
• Monster Beverage Co. (NASDAQ:MNST) - Research analysts at Jefferies Financial Group increased their FY2021 earnings per share estimates for shares of Monster Beverage in a note issued to investors on Monday, January 10th. Jefferies Financial Group analyst K. Grundy now expects that the company will earn $2.57 per share for the year, up from their previous estimate of $2.52. Jefferies Financial Group currently has a "Hold" rating and a $92.00 price objective on the stock. Jefferies Financial Group also issued estimates for Monster Beverage's Q4 2021 earnings at $0.59 EPS, FY2022 earnings at $2.78 EPS and FY2023 earnings at $3.26 EPS. Monster Beverage (NASDAQ:MNST) last announced its earnings results on Thursday, November 4th. The company reported $0.63 earnings per share for the quarter, missing the Thomson Reuters' consensus estimate of $0.67 by ($0.04). Monster Beverage had a net margin of 28.76% and a return on equity of 23.94%. The firm had revenue of $1.41 billion for the quarter, compared to the consensus estimate of $1.39 billion. During the same period in the prior year, the business earned $0.65 EPS. The company's quarterly revenue was up 13.2% compared to the same quarter last year...
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Energy Drinks On Fire, Could Top $28.3 Billion By 2027
By: TheStreet | January 13, 2022
• Consumer preferences are shifting toward energy drinks, a report says, a fast-growing space.
Energy drinks are flexing their financial muscles, as health-conscious consumers are expected to pump the U.S. market up to $28.25 billion by 2027.
This should be good news for companies like Splash Beverage Group (SBEV) , Coca-Cola (KO), National Beverage (FIZZ), Pepsi (PEP) and Celsius Holdings (CELH).
The U.S. energy market was $19.63 billion in 2020, the report said.
The study by Research and Markets said that "expanding health consciousness among individuals, along with sedentary lifestyles and busy schedules of working professionals, is shifting consumer preferences towards functional beverages."
This, in turn, is continuing to fuel the growth of the United States energy drink industry, the report said.
Why It Matters
The report said that consumption of energy drinks has gained immense popularity among the millennial population over the last decade and "it is an integral part of social gatherings, parties, and celebrations in the United States."
It is therefore no surprise that many players are scrambling to seduce this young clientele.
Pepsi owns Gatorade and late last year rival Coca-Cola confirmed that it planned to buy full control of sports drink company BodyArmor, paying $5.6 billion for the 85% it didn't own. The transaction valued BodyArmor at about $8 billion, according to The Wall Street Journal.
Coke bought its initial stake in the sports drink company in August 2018.
Earlier this month, Guggenheim analyst Laurent Grandet upgraded Coke to buy from neutral and boosted his price target to $66 from $61.
"We think the company is emerging leaner, and more agile with a portfolio focused on larger and more profitable brands that should drive better efficiency," he said. "The savings should help support marketing investments in ’22 back to ‘19 level which should benefit the top line."
MarketWatch included Celsius Holdings, which reported third-quarter revenue of $94.9 million, up 157% from a year ago, in its list of top 2022 stocks.
The company said that fitness and vending channels posted triple digit growth, which contributed about $11.4 million of incremental revenue compared with a year ago.
Big Picture
Energy drinks are non-alcoholic beverages with high levels of caffeine or other stimulants, plus amino acids, herbs and vitamins. They’re marketed as fatigue killers and refreshing beverages that can improve physical and mental performance - but this may come at a price, researchers say.
They point to high caffeine levels in energy drinks and a “rapidly expanding body of literature” that suggests negative health effects and risky behaviors may be linked to high consumption of the beverages.
Furthermore, ingredients in some of the drinks - such as guarana and taurine - are so poorly studied it’s hard to say whether they’re safe in large quantities.
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Monster Beverage Corp (MNST) to enter alcohol market with $330 million CANarchy buy
By: Reuters | January 13, 2022
Energy drinks maker Monster Beverage Corp (NASDAQ:MNST) said on Thursday it had agreed to buy craft beer and hard seltzer maker CANarchy Craft Brewery Collective Llc for $330 million in cash, marking its entry into the alcoholic drinks market.
Monster said the deal would add alcoholic brands Cigar City, Oskar Blues, Deep Ellum, Perrin Brewing, Squatters and Wasatch brands to its beverage portfolio and not include CANarchy's restaurants.
Monster co-Chief Executive Officer Hilton Schlosberg said the deal was a "springboard" for the company into the alcoholic beverage space.
"The acquisition will provide us with a fully in-place infrastructure, including people, distribution and licenses, along with alcoholic beverage development expertise and manufacturing capabilities in this industry."
The deal is expected to close in the first calendar quarter this year, with CANarchy functioning independently led by its top boss Tony Short.
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Analysts Expect Monster Beverage Co. (MNST) Will Announce Quarterly Sales of $1.31 Billion
By: MarketBeat | January 2, 2022
• Analysts expect Monster Beverage Co. (NASDAQ:MNST) to report sales of $1.31 billion for the current quarter, according to Zacks Investment Research. Five analysts have provided estimates for Monster Beverage's earnings, with estimates ranging from $1.29 billion to $1.34 billion. Monster Beverage reported sales of $1.20 billion in the same quarter last year, which indicates a positive year over year growth rate of 9.2%. The firm is scheduled to announce its next quarterly earnings report on Thursday, February 24th...
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Monster Beverage Co. (MNST) Given Consensus Recommendation of "Buy" by Analysts
By: MarketBeat | December 29, 2021
• Shares of Monster Beverage Co. (NASDAQ:MNST) have been given a consensus recommendation of "Buy" by the sixteen research firms that are covering the firm, MarketBeat Ratings reports. Four analysts have rated the stock with a hold rating and ten have assigned a buy rating to the company. The average 1 year target price among analysts that have issued ratings on the stock in the last year is $106.21...
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Monster Beverage Receives Consensus Rating of "Buy" from Brokerages
By: MarketBeat | December 4, 2021
• Monster Beverage Co. (NASDAQ:MNST) has been assigned a consensus rating of "Buy" from the sixteen brokerages that are covering the firm, MarketBeat.com reports. Four research analysts have rated the stock with a hold rating and ten have issued a buy rating on the company. The average 1 year price objective among brokerages that have issued a report on the stock in the last year is $106.21...
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Monster Beverage (MNST) Short Interest Up 18.7% in October
By: MarketBeat | November 21, 2021
• Monster Beverage Co. (NASDAQ:MNST) was the recipient of a significant increase in short interest during the month of October. As of October 29th, there was short interest totalling 5,450,000 shares, an increase of 18.7% from the October 14th total of 4,590,000 shares. Currently, 1.5% of the shares of the stock are short sold. Based on an average daily volume of 1,840,000 shares, the days-to-cover ratio is currently 3.0 days...
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Monster Beverage Said to Explore Deal With Constellation
By: Bloomberg | November 22, 2021
Monster Beverage Corp., the maker of energy drinks, is exploring a combination with Corona brewer Constellation Brands Inc., according to people familiar with the matter.
Monster Beverage, which has Coca-Cola Co. as a major shareholder, has discussed a potential deal with advisers, said the people, who asked not to be identified because deliberations are private.
Considerations may not lead to a transaction between Monster Beverage, which has a market value of $48 billion, and Constellation Brands, which is worth $44 billion. The exact structure of a potential tie-up couldn’t be immediately learned and it’s unclear whether discussions will lead to a full merger or asset deal.
Any transaction with Constellation would require the support of the Sands family, which has built the company into a global beverages player, the people said. A spokesperson for Constellation Brands declined to comment, and a representative for Monster Beverage couldn’t be immediately reached for comment.
Constellation fell 0.1% to $235.07 at 11:25 a.m. in New York, while Monster rose 0.9% to $90.11. Both stocks have underperformed the 25% jump in the S&P 500 index in 2021.
Coca-Cola Stake
Monster’s relationship with Coca-Cola may pose a sticking point, said Kenneth Shea, senior analyst for beverage and tobacco companies at Bloomberg Intelligence.
“I see such a transaction, if effected, as jeopardizing Monster’s exclusive distribution agreement with Coca-Cola, which could derail its international growth ambitions,” Shea said.
“I see little synergy between these two companies, as regulators would not welcome drinks that combine caffeine and alcohol,” Shea added. “The products produced would have to leverage their respective brands but be mindful of the limitations with product formulations.”
A representative for Coca-Cola declined to comment.
Drink Deals
Constellation Brands, which is based in Victor, New York, started as a wine producer in 1945. It now sells Corona Extra and Modelo Especial in the U.S. as well as Casa Noble Tequila, Svedka Vodka and High West Whiskey.
A deal between Constellation and Monster could be interesting for the category of cannabis-infused beverages. Monster was said to be considering CBD or hard seltzer categories, but there are concerns that could tarnish the company’s image.
Constellation has a stake of almost 40% in in Canopy Growth, a Canadian marijuana company. Canopy sells drinks with THC in Canada, and aims to sell them in the U.S. if marijuana becomes federally legal.
Monster Beverage earlier this month reported record third-quarter net sales, despite supply-chain challenges including securing aluminum cans amid the pandemic.
If the talks are successful, it would be the latest beverage deal since Coca-Cola agreed to acquire the remaining stake that it doesn’t own in sports-drink brand BodyArmor for $5.6 billion in cash earlier this month.
Other alcohol deals could be on the way. Private equity firm Sycamore Partners is also weighing a sale of Stag’s Leap Wine, potentially worth $1 billion, Bloomberg News previously reported.
Sycamore purchased the brand as part of its acquisition of Ste. Michelle Wine Estates from Altria Group Inc. in a $1.2 billion deal that closed in October.
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Monster Beverage Co. (MNST) Given Average Rating of "Buy" by Brokerages
By: MarketBeat | November 9, 2021
• Monster Beverage Co. (NASDAQ:MNST) has been given an average rating of "Buy" by the seventeen ratings firms that are currently covering the firm, Marketbeat.com reports. Five investment analysts have rated the stock with a hold recommendation and ten have issued a buy recommendation on the company. The average 1-year price objective among analysts that have covered the stock in the last year is $104.80...
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A new kind money, Bitcoin. Now there is a new kind of energy drink, Hemp Energy by Kona. Monster you want to stay on top or corner the market, natural energy by Kona.
Monster Beverage Reports 2021 Third Quarter Financial Results
By: Nasdaq | November 4, 2021
• -- Record Third Quarter Net Sales Rise 13.2 Percent to $1.41 Billion ---- Company Addressing Increased Costs, some of which are likely to be Transitory, through Reductions in Promotions and other Pricing Actions --
CORONA, Calif., Nov. 04, 2021 (GLOBE NEWSWIRE) -- Monster Beverage Corporation (NASDAQ: MNST) today reported financial results for the three- and nine-months ended September 30, 2021, including an update on the impact of the COVID-19 pandemic.
Despite the ongoing impact of the COVID-19 pandemic, the Company achieved record third quarter net sales.
During the 2021 third quarter, the Company procured additional quantities of aluminum cans from suppliers in the United States, South America and Asia in response to increased consumer demand. However, the Company continued to experience shortages in its aluminum can requirements in the United States and EMEA during the 2021 third quarter.
In addition, the Company continued to experience additional supply chain challenges, including, freight inefficiencies, trucking availability, shortages of shipping containers, port of entry congestion, insufficient co-packing capacity and delays in the receipt of certain ingredients, in the United States and EMEA. As a result, the Company was not able to fully satisfy increased demand for its products in these regions in the 2021 third quarter.
During the 2021 third quarter, the Company continued to experience increased aluminum can costs, attributable to higher aluminum commodity pricing as well as the costs of importing aluminum cans. In addition, the Company experienced increased ingredient and other input costs, including shipping and freight, labor, trucking, fuel, co-packing fees, secondary packaging materials and increased outbound freight costs, which resulted in increased costs of sales and increased operating costs, in the 2021 third quarter.
As of September 30, 2021, the Company had $1.71 billion in cash and cash equivalents, $1.22 billion in short-term investments and $28.3 million in long-term investments. Based on currently available information, the Company does not expect the COVID-19 pandemic to have a material impact on its liquidity.
Third Quarter Results
Net sales for the 2021 third quarter increased 13.2 percent to $1.41 billion from $1.25 billion in the same period last year. Net changes in foreign currency exchange rates had a favorable impact on net sales for the 2021 third quarter of $16.4 million.
Net sales for the Company’s Monster Energy® Drinks segment which primarily includes the Company’s Monster Energy® drinks, Reign Total Body Fuel® high performance energy drinks and True NorthTM Pure Energy Seltzers, increased 14.3 percent to $1.33 billion for the 2021 third quarter, from $1.16 billion for the 2020 third quarter. Net changes in foreign currency exchange rates had a favorable impact on net sales for the Monster Energy® Drinks segment of approximately $15.4 million for the 2021 third quarter.
Net sales for the Company’s Strategic Brands segment, which primarily includes the various energy drink brands acquired from The Coca-Cola Company, as well as the Company’s affordable energy brands, increased 0.2 percent to $74.4 million for the 2021 third quarter, from $74.3 million in the 2020 third quarter. Shortages of NOS® concentrate negatively impacted net sales for the 2021 third quarter. Net changes in foreign currency exchange rates had a favorable impact on net sales for the Strategic Brands segment of approximately $1.0 million for the 2021 third quarter.
Net sales for the Company’s Other segment, which includes certain products of American Fruits and Flavors, LLC, a wholly owned subsidiary of the Company, sold to independent third-party customers (the “AFF Third-Party Products”), decreased to $6.3 million for the 2021 third quarter, from $8.6 million in the 2020 third quarter.
Net sales to customers outside the United States increased 18.7 percent to $527.4 million in the 2021 third quarter, from $444.5 million in the 2020 third quarter. Such sales were approximately 37 percent of total net sales in the 2021 third quarter, compared with 36 percent in the 2020 third quarter.
Gross profit, as a percentage of net sales, for the 2021 third quarter was 55.9 percent, compared with 59.1 percent in the 2020 third quarter. The decrease in gross profit as a percentage of net sales for the 2021 third quarter was primarily the result of increased aluminum can costs, attributable to higher aluminum commodity pricing, as well as the cost of importing aluminum cans, logistical costs and geographical sales mix.
Operating expenses for the 2021 third quarter were $344.7 million, compared with $277.9 million in the 2020 third quarter. The increase in operating expenses was primarily due to increased out-bound freight and warehouse costs, increased expenditures for sponsorships and endorsements, increased expenditures for other marketing activities, including social media and digital marketing and increased payroll costs. Operating expenses for the 2021 third quarter also included increased expenditures of $5.3 million for distributor terminations.
Operating expenses as a percentage of net sales for the 2021 third quarter were 24.4 percent, compared with 22.3 percent in the 2020 third quarter. Operating expenses as a percentage of net sales for the 2019 third quarter (pre COVID-19) were 24.5 percent.
Distribution costs as a percentage of net sales were 4.6 percent for the 2021 third quarter, compared with 3.5 percent in the 2020 third quarter.
Selling expenses as a percentage of net sales for the 2021 third quarter were 9.7 percent, compared with 8.8 percent in the 2020 third quarter.
General and administrative expenses for the 2021 third quarter were $142.6 million, or 10.1 percent of net sales, compared with $125.4 million, or 10.1 percent of net sales, for the 2020 third quarter. Stock-based compensation was $16.7 million for the third quarter of 2021, compared with $19.5 million in the 2020 third quarter.
Operating income for the 2021 third quarter decreased to $444.5 million, from $458.6 million in the 2020 third quarter.
The effective tax rate for the 2021 third quarter was 23.7 percent, compared with 23.4 percent in the 2020 third quarter.
Net income for the 2021 third quarter decreased 3.0 percent to $337.2 million, from $347.7 million in the 2020 third quarter. Net income per diluted share for the 2021 third quarter decreased 3.5 percent to $0.63, from $0.65 in the third quarter of 2020.
Rodney C. Sacks, Chairman and Co-Chief Executive Officer, said: “We are pleased to report record sales for the third quarter, despite the ongoing impact of the COVID-19 pandemic.
“The energy drink category, and in particular our Monster Energy® brand, continues to demonstrate resilience and growth in most of our markets.
“In the third quarter of 2021, we expanded distribution of our brands in certain international markets. In the United States, we launched our line of True North™ Pure Energy Seltzer in August 2021 and are currently in the process of launching our Monster® (stylized) Reserve line to the retail trade,” Sacks added.
Vice Chairman and Co-Chief Executive Officer Hilton H. Schlosberg said: “We continued to face headwinds in keeping up with demand in the United States and in EMEA in the third quarter, largely as a result of a shortage in aluminum cans, the availability of co-packing capacity and procurement challenges in other inputs. Aluminum cans in excess of our contracted volumes are entering our supply chain from the United States, South America and Asia, in order to meet the increased consumer demand. The shortage of shipping containers, and global port congestion continue to impact our operations. We have entered into supply agreements with two new aluminum can suppliers in the United States, with deliveries commencing from October and December, respectively.
“We are experiencing increased costs in our operations, including aluminum, shipping, freight and other inputs, some of which are likely to be transitory. We will continue to implement measures to mitigate such increased costs through reductions in promotions and other pricing actions in the United States and in EMEA,” Schlosberg added.
2021 Nine-Months ResultsNet sales for the nine-months ended September 30, 2021 increased 21.0 percent to $4.12 billion, from $3.40 billion in the comparable period last year. Net changes in foreign currency exchange rates had a favorable impact on net sales for the nine-months ended September 30, 2021 of $64.3 million.
Gross profit, as a percentage of net sales, for the nine-months ended September 30, 2021 was 56.9 percent, compared with 59.8 percent in the comparable period last year.
Operating expenses for the nine-months ended September 30, 2021 were $956.3 million, compared with $802.3 million in the comparable period last year.
Operating income for the nine-months ended September 30, 2021 increased to $1.38 billion, from $1.23 billion in the comparable period last year.
The effective tax rate was 23.6 percent for the nine-months ended September 30, 2021, compared with 23.5 percent in the comparable period last year.
Net income for the nine-months ended September 30, 2021 increased 12.6 percent to $1.06 billion, from $937.9 million in the comparable period last year. Net income per diluted share for the nine-months ended September 30, 2021 increased 12.5 percent to $1.97, from $1.75 in the comparable period last year.
Share Repurchase Program
No shares of the Company’s common stock were repurchased during the 2021 third quarter. As of November 4, 2021, approximately $441.5 million remained available for repurchase under the previously authorized repurchase program.
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Zacks: Brokerages Expect Monster Beverage Co. (MNST) Will Announce Quarterly Sales of $1.39 Billion
By: MarketBeat | November 3, 2021
Wall Street brokerages expect that Monster Beverage Co. (NASDAQ:MNST) will announce sales of $1.39 billion for the current quarter, Zacks Investment Research reports. Five analysts have provided estimates for Monster Beverage's earnings. The lowest sales estimate is $1.34 billion and the highest is $1.41 billion. Monster Beverage posted sales of $1.25 billion during the same quarter last year, which suggests a positive year over year growth rate of 11.2%. The company is scheduled to announce its next quarterly earnings report after the market closes on Thursday, November 4th...
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Monster Beverage (MNST) PT Lowered to $105.00 at Deutsche Bank Aktiengesellschaft
By: MarketBeat | November 2, 2021
Monster Beverage (NASDAQ:MNST) had its price target lowered by Deutsche Bank Aktiengesellschaft from $108.00 to $105.00 in a note issued to investors on Tuesday, The Fly reports. The brokerage currently has a "buy" rating on the stock. Deutsche Bank Aktiengesellschaft's target price would indicate a potential upside of 22.86% from the company's current price...
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This Company is About to Start a Monster Seasonal Period
By: Tom Bowley | October 29, 2021
As we wrap up another October, it's time to start looking ahead at the seasonally bullish November period. U.S. equities have LOVED November for many years, as the S&P 500 has risen during November in each of the last 10 years. But which stocks ride these seasonal tailwinds the best? Well, there are plenty to choose from and we'll unveil our Top 20 November stocks in our November Seasonality Report this weekend. For now, however, I'd like to share one company that's likely to be on this list - Monster Beverage (MNST).
Before I show you the seasonal chart, let's keep two things in mind. First, MNST will report its latest quarterly earnings on November 4th after the market closes. It's been a horrible relative performer in 2021, so Wall Street is not exactly expecting a blowout report. Second, though, is the positive divergence that's printed on the chart. Take a look:
I'll be honest. I'm a momentum trader, so MNST is not typically the type of stock I'd be looking at because of its failed double-top breakout in August, followed by a nasty downtrend - all in a market where soft drinks ($DJUSSD) have rallied in October back to near their August high. History, however, suggests that maybe the positive divergence is telling us to jump in, as most of the bad news may be priced in. Here's MNST's seasonal history:
This is a tough call, but knowledge is king. Should the technical picture change with earnings, just be aware that seasonal tailwinds could carry MNST much, much higher in time.
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$1.38 Billion in Sales Expected for Monster Beverage Co. (MNST) This Quarter
By: MarketBeat | September 7, 2021
• Equities research analysts expect Monster Beverage Co. (NASDAQ:MNST) to report $1.38 billion in sales for the current quarter, according to Zacks Investment Research. Five analysts have issued estimates for Monster Beverage's earnings. The lowest sales estimate is $1.34 billion and the highest is $1.40 billion. Monster Beverage reported sales of $1.25 billion in the same quarter last year, which would suggest a positive year-over-year growth rate of 10.4%. The firm is expected to issue its next earnings results on Thursday, November 4th...
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Q3 2021 EPS Estimates for Monster Beverage Co. Cut by Analyst (MNST)
By: MarketBeat | August 9, 2021
Monster Beverage Co. (NASDAQ:MNST) - Equities researchers at Jefferies Financial Group dropped their Q3 2021 EPS estimates for shares of Monster Beverage in a note issued to investors on Thursday, August 5th. Jefferies Financial Group analyst K. Grundy now forecasts that the company will post earnings of $0.65 per share for the quarter, down from their previous estimate of $0.73. Jefferies Financial Group also issued estimates for Monster Beverage's Q4 2021 earnings at $0.55 EPS, FY2021 earnings at $2.54 EPS, Q1 2022 earnings at $0.69 EPS, Q3 2022 earnings at $0.78 EPS, FY2022 earnings at $3.02 EPS and FY2023 earnings at $3.54 EPS...
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Monster Beverage (MNST) Stock Attracts Big Money
By: Lucas Downey | August 9, 2021
• Monster Beverage Corp., (MNST) has been in growth mode for years. In two short years, shares are up 63%. And it could be setting up for more highs soon. One likely reason is due to Big Money lifting the stock.
So, what’s Big Money? Said simply, that’s when a stock goes up in price alongside chunky volumes. It’s indicative of institutions betting on the shares.
Smart money managers are always looking for the next hot stock. And Monster Beverage has many fundamental qualities that are attractive.
This sets up well for the stock going forward. But how the stock is trading points to more upside. As I’ll show you, the Big Money has been consistent in the shares the last year.
You see, fund managers are always looking to bet on the next outlier stocks…the best in class. They spend countless hours sizing up companies, reading reports, speaking to analysts…you name it. When they find a company firing on all cylinders, they pounce in a big way.
That’s why I’ve learned how critical it is to gauge Big Money demand for shares. To show you what I mean, have a look at all the big money signals MNST has made the last year.
The last few days has seen Big Money activity, too. Each green bar signals big trading volumes as the stock ramped in price. Red signals are showing big selling in the shares:
Source: www.mapsignals.com
In 2021, the stock has gained a modest 4%. But, MNST just made one of these rare green signals. It came after a solid earnings report. Generally speaking, recent green bars could mean more upside is ahead.
Now, let’s check out technical action grabbing my attention:
• 1Y outperformance vs. staples ETF (+4.19% vs. XLP)
Outperformance is huge for leading stocks.
Next, it’s a good idea to check under the hood. Meaning, I want to make sure the fundamental story is strong too. As you can see, Monster Beverage has been growing revenues and earnings rapidly. Take a look:
• 3-year sales growth rate (+10.94%)
• 3-year earnings growth rate (+22.6%)
Source: FactSet
Marrying great fundamentals with technically superior stocks is a winning recipe over the long-term.
In fact, Monster Beverage has been a top-rated stock at my research firm, MAPsignals, dozens of times the last few years. That means the stock has buy pressure, strong technicals, and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.
MNST has been a Big Money favorite since 2015. And since it first appeared on this report back on 1/13/2015, it’s up 157%. The blue bars below are the times that Monster Beverage was a top pick:
Source: www.mapsignals.com
Looking at that chart above, that’s what I call the stairway to heaven! I wouldn’t be surprised if Monster Beverage makes additional appearances in the years to come. Let’s tie this all together.
Monster Beverage continues to fire on all cylinders technically alongside growing sales and earnings. I like the long-term story of the stock.
The Bottom Line
The Monster Beverage rally could have further to go. Big money buying in the shares is signaling to take notice. Shares could be positioned for further upside. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a growth-oriented portfolio.
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Monster Beverage (MNST) Q2 Earnings & Sales Beat, Costs Hurt
By: Zacks Equity Research | August 6, 2021
Monster Beverage Corporation (MNST) reported better-than-expected top and bottom lines in second-quarter 2021. Its sales and earnings also improved year over year. Results gained from continued strength in its energy drink category, particularly the Monster Energy brand. Going forward, management doesn’t expect any material impact of the COVID-19 pandemic on the functioning of its co-packers and bottlers/distributors, who manufacture and distribute products, respectively.
However, logistics issues, including shortages of shipping containers and global port congestions, higher input costs and freight inefficiencies hurt gross and operating margins in the second quarter. The company was unable to fully meet the increasing consumer demand in the United States and EMEA in the second quarter due to the shortages in aluminum cans and delays in procuring certain ingredients.
Shares of this Zacks Rank #4 (Sell) company have gained 0.7% in the past three months compared with the industry’s 5.3% growth.
Image Source: Zacks Investment Research
Q2 Highlights
Monster Beverage’s earnings of 75 cents per share rose 28.6% year over year and beat the Zacks Consensus Estimate of 67 cents.
Net sales of $1,461.9 million improved 33.6% year over year and surpassed the Zacks Consensus Estimate of $1,388 million. Favorable currency translations contributed $38.6 million to net sales in the reported quarter. Robust year-over-year top-line comparisons mainly reflected more severe impacts of the pandemic in the year-ago quarter.
Net sales to customers outside the United States rose 66.4% to $546.3 million, representing about 37% of net sales.
Segmental Performance
Monster Energy Drinks: The segment primarily includes brands like Monster Energy drinks and Reign Total Body Fuel high-performance energy drinks. The segment’s net sales increased 33% year over year to $1.37 billion. The segment’s sales included a positive impact of $35.5 million from favorable currency rates.
Strategic Brands: In addition to the affordable energy drink brands, the segment includes a range of energy drink brands acquired from The Coca-Cola Company (KO Quick QuoteKO - Free Report) . The segment’s net sales improved 45.9% year over year to $86.9 million in the second quarter. Currency tailwinds aided the segment’s sales by $3.1 million.
Other: Net sales in the segment, which includes some products of American Fruits & Flavors sold to independent third parties (AFF Third-Party Products), grew 19.7% year over year to $7.9 million.
Costs & Margins
The company’s second-quarter 2021 gross margin contracted 210 basis points (bps) to 57.2% due to the adverse geographical sales mix and higher input costs caused by increased raw material freight-in costs and aluminum can costs.
In the second quarter, the company continued to witness shortages in its aluminum can requirements in North America and Europe, owing to its higher volume growth and the ongoing supply constraints in the aluminum can industry. The company is also 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 in the second quarter.
To meet the demand challenges, the company has taken steps to source additional quantities of aluminum cans in excess of its contracted volumes from the United States, South America and Asia. However, logistical issues, including shortages of shipping containers and global port of entry congestion, are likely to delay the arrival of imported cans, with deliveries likely to increase sequentially in the second half of 2021. Additionally, it has entered supply agreements with two suppliers of aluminum can in the United States, which are anticipated to be operational in the fourth quarter of 2021.
Apart from this, the company is also facing freight inefficiencies as well as significant increases in domestic and international freight costs. It is experiencing higher input costs, particularly for aluminum, and other costs in the current environment. The headwinds have resulted in higher cost of sales as well as increased operating expenses in the second quarter, impacting both gross and operating margins.
Management expects challenges related to the supply constraints in the aluminum can industry, shortages of shipping containers, global port congestions, and higher freight and input costs to continue for the next few months. This will continue to adversely impact gross margin rates.
Operating expenses grew 23.3% year over year to $310.9 million. The increase can be attributed to the lower expenditure in the year-ago quarter toward sponsorships, endorsements and other marketing activities, primarily as a result of the pandemic. As a percentage of sales, operating expenses declined 180 bps to 21.3%. Lower operating expense rate was mainly due to reduced general & administrative expenses, offset by higher selling and distribution costs.
General and administrative expenses, as a percentage of net sales, contracted 280 bps to 7.9%. Selling expenses, as a percentage of net sales, rose 20 bps to 9%. Distribution costs, as a percentage of net sales, expanded 80 bps to 4.4%.
Operating income of $526 million grew 29.1% year over year. However, operating margin contracted 120 bps to 36% for the reported quarter.
Other Financials
Monster Beverage ended the second quarter with cash and cash equivalents of $1,584.2 million, and total stockholders' equity of $5,905.5 million. Short-term investments as of Jun 30, 2021, were $969 million, while long-term investments were $91 million. The company does not expect the pandemic to have any effect on its liquidity.
In the reported quarter, the company did not buy back any shares. As of Aug 5, 2021, it had $441.5 million remaining under the previously authorized share repurchase plan.
Stocks to Consider
PepsiCo, Inc. (PEP) currently has a long-term earnings growth rate of 8.4% and a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Heineken NV (HEINY), also a Zacks Rank #2 stock, has an expected long-term earnings growth rate of 25.2%.
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Monster Beverage EPS beats by $0.08, beats on revenue
By: Seeking Alpha | August 5, 2021
Monster Beverage (NASDAQ:MNST): Q2 GAAP EPS of $0.75 beats by $0.08.
Revenue of $1.46B (+33.9% Y/Y) beats by $70M.
Gross profit as a percentage of net sales, for the 2021 second quarter was 57.2 percent, compared with 60.3 percent in the 2020 second quarter.
Operating income for the 2021 second quarter increased to $526.0 million, from $407.3 million in the 2020 second quarter.
“In the second quarter of 2021, we continued to secure distribution in both our domestic and international markets for our products, including our new products introduced earlier this year. We are planning for additional launches during the second half of 2021,” said Rodney C. Sacks, Chairman and Co-CEO.
Shares +0.87%.
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Monster Beverage (MNST) Receives Consensus Rating of "Buy" from Brokerages
By: MarketBeat | July 24, 2021
• Shares of Monster Beverage Co. (NASDAQ:MNST) have been given a consensus rating of "Buy" by the twenty research firms that are presently covering the stock, Marketbeat.com reports. Four analysts have rated the stock with a hold recommendation and thirteen have given a buy recommendation to the company. The average 12 month price target among brokers that have issued a report on the stock in the last year is $101.84...
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Monster Beverage (MNST) Upgraded by Citigroup to Buy
By: MarketBeat | July 23, 2021
• Monster Beverage (NASDAQ:MNST) was upgraded by research analysts at Citigroup from a "neutral" rating to a "buy" rating in a report issued on Friday, The Fly reports. The firm currently has a $110.00 price objective on the stock, up from their prior price objective of $97.00. Citigroup's price objective points to a potential upside of 17.81% from the stock's previous close...
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Credit Suisse Group increased their price objective on Monster Beverage from $115.00 to $118.00
By: MarketBeat | July 8, 2021
A number of equities research analysts have issued reports on the stock. Evercore ISI reissued a "buy" rating on shares of Monster Beverage in a report on Sunday, May 9th. Credit Suisse Group increased their price objective on Monster Beverage from $115.00 to $118.00 and gave the stock an "outperform" rating in a report on Tuesday, March 16th. Morgan Stanley lifted their target price on Monster Beverage from $106.00 to $115.00 and gave the company an "overweight" rating in a report on Monday, April 19th. Stifel Nicolaus reissued a "buy" rating and issued a $107.00 price target on shares of Monster Beverage in a report on Tuesday, June 15th. Finally, Truist boosted their price objective on shares of Monster Beverage from $105.00 to $115.00 and gave the company a "buy" rating in a research note on Friday, May 7th. Five investment analysts have rated the stock with a hold rating and twelve have assigned a buy rating to the stock. The company currently has an average rating of "Buy" and a consensus price target of $101.26...
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Monster Beverage Co. (MNST) Receives Consensus Rating of "Buy" from Analysts
By: MarketBeat | June 29, 2021
Monster Beverage Co. (NASDAQ:MNST) has been assigned a consensus rating of "Buy" from the twenty brokerages that are currently covering the stock, MarketBeat reports. Five analysts have rated the stock with a hold rating and twelve have issued a buy rating on the company. The average 1-year price target among brokers that have issued ratings on the stock in the last year is $101.26...
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$1.38 Billion in Sales Expected for Monster Beverage Co. (MNST) This Quarter
By: MarketBeat | June 20, 2021
Wall Street analysts expect that Monster Beverage Co. (NASDAQ:MNST) will announce $1.38 billion in sales for the current fiscal quarter, according to Zacks Investment Research. Five analysts have provided estimates for Monster Beverage's earnings, with the highest sales estimate coming in at $1.42 billion and the lowest estimate coming in at $1.34 billion. Monster Beverage posted sales of $1.09 billion in the same quarter last year, which suggests a positive year over year growth rate of 26.6%. The firm is expected to issue its next earnings report on Tuesday, August 3rd...
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Stock Traders Buy Large Volume of Monster Beverage Put Options
By: MarketBeat | June 15, 2021
Monster Beverage Co. (NASDAQ:MNST) saw unusually large options trading on Monday. Stock traders purchased 5,416 put options on the stock. This is an increase of 1,664% compared to the average volume of 307 put options...
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Monster Beverage's (MNST) "Buy" Rating Reiterated at Stifel Nicolaus
By: MarketBeat | June 15, 2021
Monster Beverage (NASDAQ:MNST)'s stock had its "buy" rating reissued by equities researchers at Stifel Nicolaus in a research report issued on Tuesday, TipRanks reports. They currently have a $107.00 price target on the stock. Stifel Nicolaus' price target indicates a potential upside of 15.23% from the company's current price...
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Monster Beverage Co. Insider Emelie Tirre Sells 42,786 Shares
By: MarketBeat | June 4, 2021
Monster Beverage Co. (NASDAQ:MNST) insider Emelie Tirre sold 42,786 shares of the business's stock in a transaction that occurred on Thursday, June 3rd. The shares were sold at an average price of $95.08, for a total value of $4,068,092.88. Following the completion of the transaction, the insider now owns 14,557 shares of the company's stock, valued at $1,384,079.56. The sale was disclosed in a legal filing with the SEC, which is accessible through the SEC website.
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Monster Beverage Co. (MNST) Given Consensus Rating of "Buy" by Analysts
By: MarketBeat | June 4, 2021
Shares of Monster Beverage Co. (NASDAQ:MNST) have earned an average rating of "Buy" from the twenty-one research firms that are currently covering the company, Marketbeat reports. Five equities research analysts have rated the stock with a hold recommendation and thirteen have given a buy recommendation to the company. The average 12 month price target among analysts that have issued a report on the stock in the last year is $100.10.
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Consumer Stocks Have Taken a Hit. Why Monster Beverage, Carvana, and 3 Others Are Bargains.
By: Barron's | May 26, 2021
Consumer stocks have had a difficult few weeks. Worries about inflation, labor costs, and how much of the recovery is priced into the market have weighed on the sector. Yet that selloff has created a buying opportunity for some of the strongest names, argues Wells Fargo.
In the food space, analyst Ed Kelly highlights Performance Food Group (ticker: PFGC). The restaurant supplier fell after announcing its deal to buy convenience store distributor Core-Mark earlier this month, and while the acquisition wasn’t his first choice, Kelly thinks it will be a good transaction for the company. Convenience stores are a growing sector of food retail, and the company’s respected management team deserves the benefit of the doubt, he argues. The stock is up 4.2% this year.
Analyst Zack Fadem likes Carvana (CVNA) in the broad retail category for durable goods. The shares have slumped recently, creating an “attractive entry point for a clear market leader in a large…and highly fragmented industry on the cusp of accelerating online adoption.” Shares are up 8.5% this year.
Demand for online car buying is robust, and the company has made key moves to reduce bottlenecks in its supply. Its wide assortment of inventory and customer service should continue to pull market share from traditional dealers, he writes.
In specialty retail and apparel, analyst Ike Boruchow says VF shares (VFC) have become too cheap. The stock was sold off following fiscal fourth-quarter earnings last week, and is down 8.5% this year. He argues that the company is making important strides. While in the past it depended largely on the Vans brand, today VF’s growth and margins are becoming more evenly balanced thanks to improvements at other brands like The North Face and Timberland. He also thinks full-year guidance looks conservative.
Analyst Chris Carey likes Monster Beverage (MNST) among household and personal-care product companies. It too hasn’t performed well in the weeks since its first-quarter earnings. The stock is up less than 1% this year.
He thinks investors are underestimating organic sales growth, which could meaningfully surprise on the upside in the current quarter, and the company’s ability to grow margins. He’s also encouraged by recent news that Coca-Cola (KO) is discontinuing its energy line. That move shows how strongly Monster and Red Bull dominate the category and could lead to renewed hopes of a Coke-Monster tie-up that could bolster the stock.
Wingstop (WING) is analyst Jon Tower’s pick in restaurants. The company was a winner during the pandemic, although more recently investors have worried about how it will face difficult year-ago comparisons at a time when chicken prices are high. The stock is up 7.5% this year.
“However, we see this pullback as a great opportunity for investors to build positions in a highly cash-generative business model with an understated domestic unit growth potential,” as well as international potential, he says.
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Truist Securiti Comments on Monster Beverage Co.'s Q3 2021 Earnings (MNST)
By: MarketBeat | May 12, 2021
Monster Beverage Co. (NASDAQ:MNST) - Equities research analysts at Truist Securiti increased their Q3 2021 earnings per share estimates for shares of Monster Beverage in a note issued to investors on Thursday, May 6th. Truist Securiti analyst W. Chappell now expects that the company will earn $0.77 per share for the quarter, up from their prior estimate of $0.74. Truist Securiti also issued estimates for Monster Beverage's Q4 2021 earnings at $0.68 EPS, FY2021 earnings at $2.74 EPS, Q1 2022 earnings at $0.74 EPS, Q2 2022 earnings at $0.81 EPS, Q3 2022 earnings at $0.89 EPS, Q4 2022 earnings at $0.77 EPS, FY2022 earnings at $3.21 EPS and FY2023 earnings at $3.58 EPS. Monster Beverage (NASDAQ:MNST) last released its quarterly earnings data on Thursday, May 6th. The company reported $0.59 earnings per share for the quarter, missing the Zacks' consensus estimate of $0.61 by ($0.02). The business had revenue of $1.24 billion during the quarter, compared to analyst estimates of $1.22 billion. Monster Beverage had a return on equity of 28.24% and a net margin of 26.99%. The firm's revenue was up 17.1% compared to the same quarter last year. During the same quarter in the previous year, the company earned $0.52 EPS.
Other analysts have also issued research reports about the stock. Sanford C. Bernstein began coverage on shares of Monster Beverage in a research report on Tuesday, January 19th. They set a "market perform" rating and a $100.00 price target on the stock. Truist Financial raised their price target on shares of Monster Beverage from $105.00 to $115.00 in a research report on Friday, May 7th. Argus raised their price target on shares of Monster Beverage from $95.00 to $100.00 and gave the company a "buy" rating in a research report on Monday, March 8th. Truist Securities raised their price target on shares of Monster Beverage from $105.00 to $115.00 and gave the company a "buy" rating in a research report on Friday, May 7th. Finally, Evercore ISI reaffirmed a "buy" rating on shares of Monster Beverage in a report on Sunday. Five research analysts have rated the stock with a hold rating and fourteen have assigned a buy rating to the company's stock. The company presently has an average rating of "Buy" and an average price target of $100.10.
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Was The Smart Money Right About Monster Beverage Corp (MNST)?
By: Debasis Saha | May 10, 2021
Our extensive research has shown that imitating the smart money can generate significant returns for retail investors, which is why we track nearly 900 active prominent money managers and analyze their quarterly 13F filings. The stocks that are heavily bought by hedge funds historically outperformed the market, though there is no shortage of high profile failures like hedge funds' 2018 losses in Facebook and Apple. Let’s take a closer look at what the funds we track think about Monster Beverage Corp (NASDAQ:MNST) in this article.
Monster Beverage Corp (NASDAQ:MNST) was in 44 hedge funds' portfolios at the end of December. The all time high for this statistic is 50. MNST has seen a decrease in hedge fund sentiment of late. There were 50 hedge funds in our database with MNST positions at the end of the third quarter. Our calculations also showed that MNST isn't among the 30 most popular stocks among hedge funds (click for Q4 rankings).
Do Hedge Funds Think MNST Is A Good Stock To Buy Now?
At Q4's end, a total of 44 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -12% from one quarter earlier. The graph below displays the number of hedge funds with bullish position in MNST over the last 22 quarters. With the smart money's positions undergoing their usual ebb and flow, there exists a few notable hedge fund managers who were boosting their stakes substantially (or already accumulated large positions).
Among these funds, Renaissance Technologies held the most valuable stake in Monster Beverage Corp (NASDAQ:MNST), which was worth $946 million at the end of the fourth quarter. On the second spot was Broadwood Capital which amassed $430.6 million worth of shares. AQR Capital Management, D E Shaw, and Marshall Wace LLP were also very fond of the stock, becoming one of the largest hedge fund holders of the company. In terms of the portfolio weights assigned to each position Broadwood Capital allocated the biggest weight to Monster Beverage Corp (NASDAQ:MNST), around 25.55% of its 13F portfolio. Lakehouse Capital is also relatively very bullish on the stock, designating 9.49 percent of its 13F equity portfolio to MNST.
Because Monster Beverage Corp (NASDAQ:MNST) has witnessed bearish sentiment from hedge fund managers, it's safe to say that there exists a select few fund managers that decided to sell off their entire stakes heading into Q1. Intriguingly, Jeff Lignelli's Incline Global Management dumped the biggest position of the 750 funds followed by Insider Monkey, totaling close to $19.6 million in stock, and Robert Pitts's Steadfast Capital Management was right behind this move, as the fund dumped about $11 million worth. These bearish behaviors are important to note, as total hedge fund interest fell by 6 funds heading into Q1.
Let's go over hedge fund activity in other stocks similar to Monster Beverage Corp (NASDAQ:MNST). We will take a look at Honda Motor Co Ltd (NYSE:HMC), America Movil SAB de CV (NYSE:AMX), Aon plc (NYSE:AON), Prudential Public Limited Company (NYSE:PUK), Emerson Electric Co. (NYSE:EMR), Ambev SA (NYSE:ABEV), and Newmont Corporation (NYSE:NEM). This group of stocks' market caps are similar to MNST's market cap.
As you can see these stocks had an average of 29.6 hedge funds with bullish positions and the average amount invested in these stocks was $1276 million. That figure was $2837 million in MNST's case. Aon plc (NYSE:AON) is the most popular stock in this table. On the other hand Prudential Public Limited Company (NYSE:PUK) is the least popular one with only 2 bullish hedge fund positions. Monster Beverage Corp (NASDAQ:MNST) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for MNST is 59.8. Stocks with higher number of hedge fund positions relative to other stocks as well as relative to their historical range receive a higher sentiment score. This is a slightly positive signal but we'd rather spend our time researching stocks that hedge funds are piling on. Our calculations showed that top 10 most popular stocks among hedge funds returned 90.7% in 2019 and 2020, and outperformed the S&P 500 ETF (SPY) by 35 percentage points. These stocks gained 13.6% in 2021 through April 30th and beat the market again by 1.6 percentage points. Unfortunately MNST wasn't nearly as popular as these 10 stocks and hedge funds that were betting on MNST were disappointed as the stock returned 4.9% since the end of December (through 4/30) and underperformed the market.
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Monster Beverage (MNST) Price Target Raised to $115.00
By: MarketBeat | May 7, 2021
Monster Beverage (NASDAQ:MNST) had its price objective raised by analysts at Truist Financial from $105.00 to $115.00 in a report released on Friday, The Fly reports. Truist Financial's price objective points to a potential upside of 27.62% from the stock's previous close.
Other equities research analysts also recently issued research reports about the stock. Truist Securities boosted their target price on shares of Monster Beverage from $105.00 to $115.00 and gave the company a "buy" rating in a research note on Friday. Stifel Nicolaus boosted their target price on shares of Monster Beverage from $91.00 to $105.00 and gave the company a "buy" rating in a research note on Friday, January 8th. Smith Barney Citigroup upped their price target on shares of Monster Beverage from $89.00 to $99.00 in a research report on Friday, January 15th. Morgan Stanley boosted their price objective on Monster Beverage from $106.00 to $115.00 and gave the stock an "overweight" rating in a report on Monday, April 26th. Finally, Citigroup Inc. 3% Minimum Coupon Principal Protected Based Upon Russell boosted their price objective on Monster Beverage from $89.00 to $99.00 and gave the company a "neutral" rating in a research report on Friday, January 15th. Five analysts have rated the stock with a hold rating and fourteen have given a buy rating to the company. Monster Beverage currently has an average rating of "Buy" and a consensus target price of $100.10.
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Monster Beverage (MNST) Drops on Mixed Quarter
By: TheStreet | May 7, 2021
• Monster Beverage analysts are mixed in their assessment of the drinks producer's recent quarter. The stock is lower.
Shares of Monster Beverage (MNST) dropped Friday after the company reported first- quarter earnings that lagged estimates while sales beat.
Shares of the Corona, Calif., beverage company at last check were down 3.9% to $91.34.
Monster reported earnings of 59 cents a share on revenue of $1.24 billion. Analysts surveyed by FactSet were expecting earnings of 61 cents a share on revenue of $1.22 billion.
The company also said that it would face an aluminum shortage in North America and Europe.
"In order to satisfy increased consumer demand, we are sourcing aluminum cans in excess of our contracted volumes from South America and Asia," Co-Chief Executive Hilton Schlosberg.
Analysts at Goldman Sachs reiterated their buy rating and $107 price target.
The investment firm says "strong sales and accelerating growth narrative should predominate and [any weakness is] a buying opportunity."
The firm also says Monster has a "very robust innovation pipeline this year and beyond."
Truist analyst Bill Chappell rates the company buy and raised his price target to $115 from $105. Monster has "incredible sales momentum" and should benefit from increased travel and convenience-store foot traffic.
JPMorgan analyst Andrea Teixeira rates the company neutral with a $96 price target. "The quarter will likely be looked at very differently by bulls and bears given the diverging trends and outlook in the gross margins and top line."
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Monster Beverage Friday Afternoon Analyst Calls
By: 24/7 Wall St. | May 7, 2021
Monster Beverage Corp. (NASDAQ: MNST): Truist reiterated its Buy rating and raised the price target to $115 from $105. The stock traded near $90 on Friday, in a 52-week range of $63.38 to $99.24. It has a consensus price target of $103.89.
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Monster Beverage Reports 2021 First Quarter Financial Results
By: Monster Beverage Corporation | May 6, 2021
CORONA, Calif., May 06, 2021 (GLOBE NEWSWIRE) -- Monster Beverage Corporation (NASDAQ: MNST) today reported financial results for the three-months ended March 31, 2021.
COVID-19 Pandemic
The Company’s top priority remains the health, safety and well-being of its employees. The Company’s flavor manufacturing facilities, its co-packers, warehouses and shipment facilities, have operated throughout the COVID-19 pandemic. The Company’s bottlers/distributors are operating and the Company’s products remain generally available to consumers. In limited countries, the operations of the Company’s bottlers/distributors have, in part, been negatively affected for varying periods of time.
Despite the ongoing impact of the COVID-19 pandemic, the Company achieved record first quarter net sales. Currently, the Company does not foresee a material impact on the ability of its co-packers to manufacture and its bottlers/distributors to distribute its products as a result of the COVID-19 pandemic. The Company’s supply chain remains largely intact. However, the Company is experiencing shortages in its aluminum can requirements in North America and Europe, given the Company’s volume growth and the current supply constraints in the aluminum can industry. The Company has taken steps to source additional quantities of aluminum cans from South America and Asia, however, logistical issues, including ocean freight and port of entry congestion could delay such supply. Logistical issues in relation to the importation of certain other raw materials and ingredients could impact future supply.
As of March 31, 2021, the Company had $1.18 billion in cash and cash equivalents, $980.1 million in short-term investments and $63.8 million in long-term investments. Based on currently available information, the Company does not expect the COVID-19 pandemic to have a material impact on its liquidity.
First Quarter Results
Net sales for the 2021 first quarter increased 17.1 percent to $1.24 billion, from $1.06 billion in the same period last year. Net changes in foreign currency exchange rates had a favorable impact on net sales for the 2021 first quarter of $9.3 million.
Net sales for the Company’s Monster Energy® Drinks segment, which primarily includes the Company’s Monster Energy® drinks and Reign Total Body Fuel® high performance energy drinks, increased 17.9 percent to $1.17 billion for the 2021 first quarter, from $992.5 million for the 2020 first quarter. Net changes in foreign currency exchange rates had a favorable impact on net sales for the Monster Energy® Drinks segment of approximately $9.3 million for the 2021 first quarter.
Net sales for the Company’s Strategic Brands segment, which primarily includes the various energy drink brands acquired from The Coca-Cola Company, as well as the Company’s affordable energy brands, increased 5.1 percent to $67.8 million for the 2021 first quarter, from $64.5 million in the 2020 first quarter. Net changes in foreign currency exchange rates had no significant impact on net sales for the Strategic Brands segment for the 2021 first quarter.
Net sales for the Company’s Other segment, which includes certain products of American Fruits and Flavors, LLC, a wholly-owned subsidiary of the Company, sold to independent third-party customers (the “AFF Third-Party Products”), increased to $5.7 million for the 2021 first quarter, from $5.1 million in the 2020 first quarter.
Net sales to customers outside the United States increased 28.8 percent to $459.4 million in the 2021 first quarter, from $356.8 million in the 2020 first quarter. Such sales were approximately 37 percent of total net sales in the 2021 first quarter, compared with 34 percent in the 2020 first quarter.
Gross profit as a percentage of net sales, for the 2021 first quarter was 57.5 percent, compared with 60.0 percent in the 2020 first quarter. The decrease in gross profit as a percentage of net sales for the 2021 first quarter was primarily the result of increased input costs (mainly increased raw material freight-in costs), geographical sales mix, and higher promotional allowances as a percentage of net sales.
Operating expenses for the 2021 first quarter were $300.8 million, compared with $272.2 million in the 2020 first quarter. As a percentage of net sales, operating expenses for the 2021 first quarter were 24.2 percent, compared with 25.6 percent in the 2020 first quarter.
Distribution costs as a percentage of net sales were 4.4 percent for the 2021 first quarter, compared with 3.7 percent in the 2020 first quarter.
Selling expenses as a percentage of net sales for the 2021 first quarter were 9.2 percent, compared with 10.3 percent in the 2020 first quarter.
General and administrative expenses for the 2021 first quarter were $131.9 million, or 10.6 percent of net sales, compared with $124.1 million, or 11.7 percent of net sales, for the 2020 first quarter. Stock-based compensation was $18.4 million for the first quarter of 2021, compared with $17.1 million in the 2020 first quarter.
Operating income for the 2021 first quarter increased to $414.1 million, from $365.0 million in the 2020 first quarter.
The effective tax rate was 23.8 percent for both the 2021 and 2020 first quarters.
Net income for the 2021 first quarter increased 13.0 percent to $315.2 million, from $278.8 million in the 2020 first quarter. Net income per diluted share for the 2021 first quarter increased 14.2 percent to $0.59, from $0.52 in the first quarter of 2020.
Rodney C. Sacks, Chairman and Co-Chief Executive Officer, said: “The Company posted record first quarter net sales and profits, despite the ongoing impact of the COVID-19 pandemic.
“According to Nielsen, the energy drink category, and in particular our Monster Energy® brand, continues to accelerate in most of our markets, including the United States.
“In the first quarter of 2021, we continued with our robust program of product launches in both our domestic and international markets, with plans for additional launches during 2021,” Sacks added.
Vice Chairman and Co-Chief Executive Officer Hilton H. Schlosberg said: “In order to satisfy increased consumer demand, we are sourcing aluminum cans in excess of our contracted volumes from South America and Asia. In addition, to meet consumer demand, we experienced freight inefficiencies in the United States and in Europe in the quarter, which resulted in increased costs of sales as well as increased operating expenses.
“We are pleased with the early results for our new energy drinks that were launched in the quarter,” Schlosberg added.
Share Repurchase Program
No shares of the Company’s common stock were repurchased during the 2021 first quarter. As of May 6, 2021, approximately $441.5 million remained available for repurchase under the previously authorized repurchase program.
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