CORONA, Calif., April 26, 2024 (GLOBE NEWSWIRE) -- Monster Beverage Corporation (NASDAQ:MNST) announced today that results for its first quarter ended March 31, 2024, will be reported on Thursday, May 2, 2024, after the close of the market. The company also said that Co-Chief Executive Officers, Rodney Sacks and Hilton Schlosberg, will host an investor conference call that same day at 2 p.m. Pacific Time to review the company's financial results and operations. The call will be open to all interested invest ...

Core Viewpoint - Monster Beverage Corporation is positioned for growth due to its strong business strategies, expansion in the energy drinks category, and successful product launches [1]. Group 1: Business Performance - The company has seen its shares increase by 18% over the past year, outperforming the industry growth of 4.9% [1]. - In the fourth quarter of 2023, net sales in the Monster Energy Drinks segment rose by 15.1% year over year [2]. - The Zacks Consensus Estimate for 2024 sales is projected at $7.96 billion, reflecting an 11.5% year-over-year growth [4]. Group 2: Product Innovation - Monster Beverage has launched several new products in various international markets, including Monster Aussie Lemonade in Japan and Monster Mango Loco in the Philippines [3]. - The company has expanded the distribution of its flavored malt beverage, The Beast Unleashed, into additional markets with plans for nationwide distribution in the U.S. [3]. Group 3: Pricing Strategy - The company has implemented price hikes in the fourth quarter of 2023 to counter rising commodity costs and inflation, contributing to an expansion of gross margin by 240 basis points [4]. - Monster Beverage is actively monitoring opportunities for further pricing actions both in the U.S. and internationally [4]. Group 4: Analyst Sentiment - Analysts are optimistic about Monster Beverage, with a Zacks Rank of 3 (Hold) and a Momentum Score of A [1]. - The earnings per share estimate for 2024 is $1.81, indicating a year-over-year growth of 16.8% [4].

Group 1: Importance of Earnings and Earnings Surprises - Earnings and interest rates are the two main factors influencing long-term stock prices, with earnings being the focus for investors [1] - Earnings surprises, whether positive or negative, can significantly impact stock performance, making it essential for investors to monitor these events closely [1] - The Zacks Earnings ESP filter is a tool designed to help investors capitalize on earnings surprises to enhance returns [2] Group 2: Zacks Earnings ESP Methodology - The Zacks Earnings ESP (Expected Surprise Prediction) identifies potential earnings surprises by analyzing recent analyst revisions [2] - The ESP is calculated by comparing the Most Accurate Estimate to the Zacks Consensus Estimate, with the percentage difference yielding the ESP figure [2] - Stocks with a positive earnings ESP and a Zacks Rank of 3 (Hold) or better have historically shown a 70% chance of a positive earnings surprise, leading to an average annual return of approximately 28% based on a 10-year backtest [2] Group 3: Stock Analysis - Tyson Foods and Monster Beverage - Tyson Foods (TSN) currently holds a 3 (Hold) ranking, with a Most Accurate Estimate of $0.42 per share and an Earnings ESP of +21.15%, indicating a strong potential to exceed earnings expectations [4] - Monster Beverage (MNST) also holds a 3 (Hold) ranking, with a Most Accurate Estimate of $0.44 per share and an Earnings ESP of +0.44%, suggesting a favorable outlook for its upcoming earnings report [5] - Both TSN and MNST are part of a larger group of Consumer Staples stocks with positive ESP figures, indicating a good chance of beating analyst expectations in their next earnings reports [4][5]

Core Viewpoint - Monster Beverage's stock has seen significant growth over the past 20 years, but current financial performance and valuation metrics suggest that the stock may not be a wise investment choice at this time [1][5]. Financial Performance - Monster Beverage's stock price increased from 15 cents in April 2004 to around $55 recently, representing a staggering gain of 36,567% [2]. - In 2023, Monster Beverage reported net sales of $7.14 billion, reflecting a 13.1% increase year-over-year, which is considered decent but not exceptional [3]. - For Q4 2023, net revenue grew 14.4% to $1.73 billion, but this fell short of Wall Street's expectation of $1.75 billion [3]. - Adjusted earnings for Q4 2023 were reported at 35 cents per share, missing the analysts' consensus estimate of 38 cents per share [3]. Valuation Metrics - The trailing 12-month price-to-sales (P/S) ratio for Monster Beverage is 8.05x, significantly higher than the sector median P/S ratio of 1.19x, indicating potential overvaluation [2][3]. - The increase in operating expenses from $390 million in Q4 2022 to $504.4 million in Q4 2023 raises concerns about the company's financial health [3]. Investment Outlook - Despite past performance, the current valuation and financial results suggest that investors should reconsider holding or purchasing Monster Beverage stock [5]. - The market may be overestimating future growth potential, making it advisable for investors to sell or avoid Monster stock [5].

The leader in terms of energy drink production, Monster Beverage stock (NASDAQ:MNST) remains the top way to play this space globally. The company’s steady top and bottom line growth have yielded remarkable returns for long-term investors that have stuck with the stock. Although the beverage market may be getting saturated, Monster Beverage stock has prioritized its product innovation to keep up with their target market. The company’s international expansion is a key growth driver, with over half of the tota ...

Monster Beverage Corporation (MNST) seems well-poised for growth, thanks to its robust business strategies. The company has been gaining from the expansion strategy and momentum in its energy drinks category. It has also been launching various products and expanding distribution across the international markets. Buoyed by such strengths, shares of this marketer of energy drinks and alternative beverages have gained 11.7% compared with the industry’s 7.3% rise over the past six months.Delving DeeperMonster B ...

Monster Beverage (MNST) closed the latest trading day at $60.14, indicating a -0.66% change from the previous session's end. This change lagged the S&P 500's 0.89% gain on the day. At the same time, the Dow added 1.03%, and the tech-heavy Nasdaq gained 1.25%.Coming into today, shares of the energy drink maker had gained 9.28% in the past month. In that same time, the Consumer Staples sector gained 2.54%, while the S&P 500 gained 3.56%.Investors will be eagerly watching for the performance of Monster Beverag ...

Core Viewpoint - The company maintains a buy rating for Monster Beverage (NASDAQ:MNST) due to strong earnings growth expectations and potential upside catalysts that could drive earnings growth above 20% [2][6]. Financial Performance - In 4Q23, MNST reported a top-line growth of 14.4%, contributing to a full-year growth of 13.1% for FY23 [3]. - Gross margins expanded by 270 basis points to 54.5%, attributed to a favorable pricing environment and lower freight and input costs [3]. - Adjusted net income for 4Q23 was $367.7 million, resulting in an adjusted EPS of $0.38, aligning with consensus expectations [3]. Future Outlook - The company experienced a strong start to FY24, with January gross sales growth of 20.5% (16% adjusted for an additional selling day) [3]. - The strong performance in January suggests positive adoption of newly launched products and indicates robust underlying demand [3]. - Anticipated trade resets and recovery of Bang distribution rights are expected to enhance shelf space and sales in 1Q24 [3]. Margin Expansion - Continued gross margin expansion is expected due to favorable trends in input and logistic costs, alongside operational leverage from volume growth and international price increases [3]. - The company has not yet implemented price increases in the U.S. market, which could further enhance profits if executed [3]. Valuation - The target price for MNST is set at $70, based on a projected topline growth of 13% and increased margin expectations [4]. - The company is expected to generate $2.28 billion in earnings for FY25, reflecting an increase of approximately $180 million from previous estimates [4]. - MNST is projected to trade at a premium compared to peers, with a historical average forward PE of 32x, while peers average around 22.4x [4].

Core Viewpoint - Monster Beverage Corporation is positioned to benefit from a generational consumer trend, with a robust growth story and diversified product offerings, despite recent underperformance compared to the S&P 500 [2][4][16] Financial Performance - The company achieved a net sales increase of approximately 14.35% in the latest full year, contributing to a 10-year compound annual growth rate of 12.26% [4] - In Q4, Monster Energy Drinks generated $1.6 billion in revenue, up from $1.39 billion the previous year, capturing 29.7% of the U.S. market share [5] - The alcoholic brands segment reported Q4 sales of $35.2 million, reflecting a year-over-year increase of 30.6% [7] Product Portfolio - Monster's revenue mix is heavily reliant on its Monster Energy drinks, but the company has diversified through strategic brand acquisitions and the introduction of alcoholic beverages [4][5] - The acquisition of Bang Energy has increased market share and introduced product differentiation advantages [5] - The Strategic Brands segment saw a slight decline in sales to $91.8 million in Q4, raising questions about its long-term strategy [6] Market Trends - The alcoholic beverage market is expected to grow at a rate of 11.2% per year until 2030, with hard seltzers projected to proliferate at 14.9% per year, indicating a favorable market environment for Monster's new product lines [7] Valuation and Technical Analysis - The stock is theoretically fairly valued with a December 2025 Forward P/E of 25.55x and a PEG ratio of 1.02x, suggesting potential for upward adjustment if growth is sustained [8] - Monster's stock is trading above its moving averages, indicating a positive momentum trend, with a 1-year RSI of 64.33, suggesting it is not yet overbought [9] Options Activity - The put call ratio of 1.32 indicates high put activity, which may provide a countercyclical benefit to bullish investors, suggesting potential for a price pivot [11]

Core Insights - Monster Beverage Corporation has shown strong performance driven by robust business strategies, product launches, and expansion in the energy drinks category [1] - The company's shares have increased by 18% over the past year, outperforming the industry growth of 4.9% [1] - Analysts are optimistic, with the Zacks Consensus Estimate for 2024 sales at $1.93 billion and earnings per share at 44 cents, reflecting year-over-year growth of 13.3% and 15.8% respectively [1] Business Performance - The energy drinks segment's net sales rose by 15.1% year over year to $1.60 billion in Q4 2023, with a currency-adjusted increase of 16.5% [2] - Monster Beverage maintains market share leadership in the energy drinks category across all outlets in the U.S. for both the 13-week and four-week periods ending February 17, 2024 [2] Product Innovation - The company has launched several new products in various international markets, including Monster Aussie Lemonade in Japan and Monster Ultra Paradise in Malaysia [3] - The introduction of The Beast Unleashed, a flavored malt beverage alcohol product, has received positive feedback and is set for nationwide distribution in the U.S. [3] Pricing Strategy - Monster Beverage has implemented price hikes in Q4 2023 and plans additional increases in various markets to counter rising commodity costs and inflation [4] - The gross margin expanded by 240 basis points to 54.2% in Q4 2023, attributed to pricing actions, lower freight-in costs, and reduced input costs [4]