For the quarter ended September 2024, Monster Beverage (MNST) reported revenue of $1.88 billion, up 1.3% over the same period last year. EPS came in at $0.40, compared to $0.41 in the year-ago quarter. The reported revenue represents a surprise of -1.77% over the Zacks Consensus Estimate of $1.91 billion. With the consensus EPS estimate being $0.42, the EPS surprise was -4.76%. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determ ...

Monster Beverage Corporation (NASDAQ:MNST) Q3 2024 Earnings Conference Call November 7, 2024 5:00 PM ET Company Participants Rodney C. Sacks - Co-Chief Executive Officer and Chairman Hilton H. Schlosberg - Co-Chief Executive Officer and Vice Chairman Thomas J. Kelly - Chief Financial Officer Conference Call Participants Andrea Teixeira - JPMorgan Christopher Carey - Wells Fargo Securities Filippo Falorni - Citi Mark Astrachan - Stifel Peter Grom - UBS Operator Good evening, and welcome to the Monster Bevera ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended September 30, 2024 Commission File Number 001-18761 MONSTER BEVERAGE CORPORATION (Exact name of registrant as specified in its charter) Delaware 47-1809393 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 1 Monster Way Corona, California 9287 ...

Group 1: Earnings Performance - Monster Beverage reported quarterly earnings of $0.40 per share, missing the Zacks Consensus Estimate of $0.42 per share, and compared to earnings of $0.41 per share a year ago, representing an earnings surprise of -4.76% [1] - The company posted revenues of $1.88 billion for the quarter ended September 2024, missing the Zacks Consensus Estimate by 1.77%, and compared to year-ago revenues of $1.86 billion [2] - Over the last four quarters, Monster Beverage has not been able to surpass consensus EPS estimates or revenue estimates [2] Group 2: Stock Performance and Outlook - Monster Beverage shares have lost about 5.5% since the beginning of the year, while the S&P 500 has gained 24.3% [3] - The company's earnings outlook, including current consensus earnings expectations for the coming quarters, will be crucial for investors [4] - The current consensus EPS estimate for the coming quarter is $0.41 on $1.81 billion in revenues, and $1.66 on $7.52 billion in revenues for the current fiscal year [7] Group 3: Industry Context - The Beverages - Soft drinks industry is currently in the top 26% of the Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5] - The Zacks Rank for Monster Beverage is currently 3 (Hold), suggesting that the shares are expected to perform in line with the market in the near future [6]

Financial Performance - Third quarter net sales increased 1.3% to $1.88 billion, compared to $1.86 billion in the same period last year[5] - Net sales, excluding the Alcohol Brands segment and adjusted for adverse foreign currency changes of $62.8 million, rose 5.0%[5] - Net income for the third quarter decreased 18.1% to $370.9 million, down from $452.7 million in the prior year[17] - Adjusted net income per diluted share was $0.40 for the third quarter, compared to $0.41 in the same quarter of 2023[18] - Net sales for the Strategic Brands segment increased 14.0% to $112.6 million, with a foreign currency adjusted increase of 24.1%[7] - For the nine months ended September 30, 2024, net sales increased 5.0% to $5.68 billion, with an unfavorable foreign currency impact of $194.8 million[29] - In Q3 2024, Monster Beverage Corporation reported net sales of $1,880.973 million, a 1.3% increase from $1,856.028 million in Q3 2023[38] - Net income for Q3 2024 was $370.919 million, or 19.7% of net sales, compared to 24.4% in Q3 2023[38] - Net income for the nine months ended September 30, 2024, was $1,260,025, or 22.2% of net sales, compared to $1,248,352, or 23.1% in 2023[40] - The nine-month net income for 2024 was reported at $1,238,337,000, compared to $1,264,009,000 for the same period in 2023, showing a slight decline of about 2%[51] Profitability Metrics - Gross profit margin for the third quarter was 53.2%, up from 53.0% in the previous year[11] - Gross profit for Q3 2024 was $999.799 million, with a gross profit margin of 53.2%, compared to 53.0% in Q3 2023[38] - Operating income decreased to $479.916 million in Q3 2024, representing 25.5% of net sales, down from 27.5% in Q3 2023[38] - Operating income for the three months ended September 30, 2024, was $526,794, with an operating margin of 27.0%, down from 28.4% in the same period of 2023[40] - Operating expenses for the nine months ended September 30, 2024, were $1,479,209, representing 26.0% of net sales, compared to 24.4% in 2023[40] Shareholder Actions - The company purchased approximately 11.3 million shares at an average price of $47.32 per share, totaling $534.7 million in Q3 2024[33] - As of November 6, 2024, approximately $500.0 million remained available for share repurchase under the authorized program[33] Expenses and Liabilities - Operating expenses for the third quarter were $519.9 million, representing 27.6% of net sales, compared to 25.5% in the prior year[12] - Operating expenses increased to $519.883 million in Q3 2024, representing 27.6% of net sales, compared to 25.5% in Q3 2023[38] - Total current assets decreased to $3,897,758 as of September 30, 2024, from $5,588,996 as of December 31, 2023[39] - Total liabilities increased to $2,273,061 as of September 30, 2024, compared to $1,458,778 as of December 31, 2023[39] - Cash and cash equivalents decreased to $1,625,339 as of September 30, 2024, from $2,297,675 as of December 31, 2023[39] Market and Product Developments - The company launched Monster Energy® Ultra Vice Guava™ in October 2024, receiving positive consumer feedback[25] - Energy drink case sales reached 219,409 thousand cases in Q3 2024, up from 203,087 thousand cases in Q3 2023[38] - Average net sales per case decreased to $8.36 in Q3 2024 from $8.90 in Q3 2023[38] - The company plans to implement a 5.0% price increase on its brands and packages, excluding Bang Energy®, effective November 1, 2024[24] Risks and Future Outlook - The company cautioned that future performance is dependent on various risks, including supply chain disruptions and economic uncertainties[37] Tax and Other Income - Provision for income taxes for the three months ended September 30, 2024, was $103,177,000, down from $129,190,000 in 2023, indicating a reduction of about 20%[47] - Interest and other (expense) income, net, excluding certain items, was $(5,820,000) for the three months ended September 30, 2024, compared to $25,975,000 in the prior year[46] - The company reported a Bang transaction gain of $(45,382,000) for the three months ended September 30, 2024, which impacted overall income significantly[49] - Total income before provision for income taxes excluding certain items was $502,543,000 for the three months ended September 30, 2024, compared to $552,769,000 in the same period last year, a decrease of approximately 9%[50] - The company incurred Bang transaction expenses of $1,783,000 for the three months ended September 30, 2024, compared to $3,353,000 in the previous year[49] - Cumulative adjustments, net of tax, for the three months ended September 30, 2024, resulted in an increase of $0.02 per share, while the previous year showed a decrease of $(0.02) per share[52]

Core Insights - Monster Beverage Corporation reported a 1.3% increase in net sales for the third quarter of 2024, reaching $1.88 billion compared to $1.86 billion in the same period last year [5][16] - The company experienced a decrease in net income per diluted share, which fell to $0.38 in Q3 2024 from $0.43 in Q3 2023 [17][16] - Adjusted net income per diluted share also decreased to $0.40 from $0.41 year-over-year [17][16] Financial Performance - Net sales excluding the Alcohol Brands segment, adjusted for adverse foreign currency changes of $62.8 million, increased by 5.0% [5][26] - Gross profit margin for Q3 2024 was 53.2%, slightly up from 53.0% in Q3 2023, with gross profit adversely impacted by inventory reserves in the Alcohol Brands segment [11][16] - Operating expenses rose to $519.9 million in Q3 2024 from $473.2 million in Q3 2023, representing 27.6% of net sales compared to 25.5% in the prior year [12][16] Segment Performance - The Monster Energy® Drinks segment saw a 0.8% increase in net sales to $1.72 billion, while the Strategic Brands segment grew by 14.0% to $112.6 million [6][7] - The Alcohol Brands segment experienced a 6.0% decline in net sales to $39.8 million, primarily due to decreased sales volume of craft beers [8] - Net sales to international customers increased by 3.6% to $760.1 million, accounting for approximately 40.4% of total net sales [10] Market Trends and Management Commentary - The energy drink category continues to grow globally, although growth rates in the U.S. have slowed [18][19] - The company has implemented a price increase of approximately 5.0% on its brands, effective November 1, 2024 [21] - Innovation remains a key focus, with new product launches receiving positive consumer responses [22][24] Nine-Month Results - For the nine months ended September 30, 2024, net sales increased by 5.0% to $5.68 billion, with a foreign currency adjusted increase of 8.6% [26] - Net income for the nine-month period decreased by 2.0% to $1.24 billion, while adjusted net income increased by 1.0% to $1.26 billion [29]

Monster Beverage NASDAQ: MNST is the leading player in energy drinks, trading at a discount to its growth opportunity. The company and market face headwinds in 2024, with consumers impacted by higher interest rates, but long-term trends suggest the energy drink market will thrive over the next decade and Monster along with it.  Monster Beverage TodayMNSTMonster Beverage$54.44 +0.33 (+0.61%) 52-Week Range$43.32▼$61.22P/E Ratio33.81Price Target$55.79Add to WatchlistThe estimates vary, but all are bullish, po ...

Monster Beverage Corporation (MNST) is expected to report third-quarter 2024 results on Nov. 7, 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 $1.92 billion, indicating growth of 3.2% from the figure reported in the year-ago quarter. The consensus estimate for earnings of 42 cents per share implies a rise of 2.4% from the year-ago quarter’s actual. The consensus mark has dipped a penny in the pa ...

When I first started investing, I read a lot of books about the best investors of all time, and inevitably learned more than I ever expected to know about Warren Buffett. His investment into The Coca-Cola Company ( KO My goal is to highlight the highest quality companies in the market, value or growth. I buy with a long-term time horizon, and am typically looking for companies with strong competitive advantages, solid management, and a history of creating shareholder value.https://www.tipranks.com/bloggers/ ...

Investment Rating - The report initiates coverage with a "Buy" rating and sets a target price of $57.1, indicating a potential upside of 16.1% from the latest closing price of $49.24 [3][4]. Core Insights - Monster Beverage Corporation (MNST) is the largest energy drink company globally, with a strong portfolio including Monster Energy, Reign, and Bang Energy. The company has shown rapid revenue growth, with 2021, 2022, and 2023 revenues of $5.54 billion, $6.31 billion, and $7.14 billion respectively, and a net profit of $1.38 billion, $1.19 billion, and $1.63 billion [1][9]. - The company’s flagship product, Monster Energy, accounted for 91.3% of revenue in the first half of 2024, with a three-year annualized growth rate of 15%. However, growth slowed to 3.3% in Q2 2024 due to economic pressures affecting its primary consumer base [1][18]. - The energy drink sector is leading the soft drink industry in growth, with an annualized growth rate of 8.1% from 2018 to 2023, and Monster holds over 40% market share in the U.S. [1][38]. Company Overview - Monster Beverage Corporation is headquartered in the U.S. and has a diversified product line that includes energy drinks and juice sodas. The company has a significant partnership with The Coca-Cola Company, which is its largest shareholder [1][9]. - The company has maintained steady growth, with a revenue increase from $4.2 billion in 2019 to $7.14 billion in 2023, reflecting an annualized compound growth rate of 11.2% [15]. Financial Performance - The company’s revenue for the first half of 2024 was $3.8 billion, a 6.9% year-over-year increase, with a net profit of $870 million, also up 6.9% [1][15]. - Forecasted net profits for 2024, 2025, and 2026 are $1.7 billion, $1.84 billion, and $2.02 billion respectively, with corresponding EPS of $1.74, $1.88, and $2.07 [1][2]. Market Strategy - Monster Beverage employs a differentiated marketing strategy, focusing on niche extreme sports sponsorships and unique packaging designs to attract younger consumers [30][29]. - The company has expanded its product offerings to include low-sugar and alcohol-based beverages, aiming to capture a broader consumer base [18][25]. Competitive Landscape - The energy drink market is characterized by strong competition, with Monster competing primarily against Red Bull, which holds about 25% market share. The top five brands in North America account for over 80% of the market [1][38]. - The company has successfully leveraged its partnership with Coca-Cola to enhance its distribution network, significantly increasing its international sales from 8% in 2008 to 40% in 2023 [31][33]. Future Growth Drivers - The report highlights the potential for continued international expansion, particularly in Europe, Latin America, and Asia, supported by Coca-Cola's distribution channels [35]. - The company is focused on improving profitability through strategic marketing, cost management, and optimizing its capital structure to support growth initiatives [36][37].