Monster Beverage Corporation (MNST) shares have lost 8.3% in the past three months. This decline is a contrast to the Zacks Beverages - Soft drinks industry and the S&P 500 index’s growth of 1.8% and 3.6%, respectively. MNST stock has also underperformed the Zacks Consumer Staples sector’s decline of 2.2%.MNST Stock's Past Three Months' Performance Image Source: Zacks Investment Research As MNST is trading near its 52-week low of $43.32, investors are left wondering: Is it time to buy the dip or wait for fu ...

Monster Beverage Corporation (MNST) , a high-profile player in the energy drink market, has encountered a notable resistance level, prompting caution among investors from a technical standpoint. MNST is trading below both the 200 and 50-day simple moving averages (SMA) for quite some time now, suggesting a bearish trend.Currently at $51.60, MNST remains below its 200-day and 50-day SMA of $51.99 and $53.29, respectively, indicating a possible sustained downward trend.MNST Stock's 200-Day & 50-Day Moving Ave ...

Company Update - Monster Beverage Corporation will host an investor meeting on January 21, 2025, to provide updates on its business and operations [1] - The presentation will be available as a live webcast at 4:45 p.m. Eastern Time on the company's website and will be archived for approximately one year [2] Business Overview - Monster Beverage Corporation is a holding company based in Corona, California, and operates through its consolidated subsidiaries [3] - The company's subsidiaries develop and market a wide range of energy drinks, including Monster Energy®, Monster Energy Ultra®, Juice Monster®, Java Monster®, Rehab® Monster®, Monster Energy® Nitro, Reign® Total Body Fuel, Reign Storm®, NOS®, Full Throttle®, Bang Energy®, BPM®, BU®, Burn®, Gladiator®, Live+®, Mother®, Nalu®, Play®, Power Play®, Relentless®, Samurai®, Ultra Energy®, Predator®, and Fury® [3] - The subsidiaries also develop and market craft beers, hard seltzers, and flavored malt beverages under brands such as Jai Alai® IPA, Dale's Pale Ale®, Dallas Blonde®, Wild Basin®, The Beast™, and Nasty Beast® Hard Tea [3] Contact Information - The Co-Chief Executive Officers, Rodney Sacks and Hilton Schlosberg, can be contacted at (951) 739-6200 [4] - Media inquiries can be directed to Roger S. Pondel or Judy Lin at PondelWilkinson Inc. at (310) 279-5980 [4]

Investment Approach - The analyst employs a fundamentals-based approach to value investing, focusing on companies with steady long-term growth, no cyclicality, and a robust balance sheet [1] - The analyst disagrees with the notion that low multiple stocks are inherently cheap, instead seeking companies offering the best long-term durability at affordable prices [1] - Valuation is crucial as investing in successful companies can be risky if one overpays, though in some cases, the development runway is so vast that price becomes less significant in the short term [1] Monster Beverage Update - The analyst previously recommended a buy rating for Monster Beverage (NASDAQ: MNST) in September 2024, citing share price weakness as an attractive entry point [1] - The current post serves as an update on the analyst's views regarding Monster Beverage [1]

Monster Beverage Corporation (MNST) , a leading player in the energy drink market, finds itself at a crossroads as its stock struggles under mounting pressures. While the company's forward 12-month price-to-earnings (P/E) ratio of 27.60 highlights the premium investors have historically placed on its growth potential, this valuation appears stretched compared to broader market benchmarks.TAP Stock Looks Overvalued Image Source: Zacks Investment Research The current P/E for the S&P 500 stands at 22.00x, whil ...

Shares of Monster Beverage Corporation (MNST) have shown strength in the past three months. The stock has gained 14.3% against the industry’s 8% decline in the same time frame. The company has been benefiting from the expansion of its energy drinks category and product launches. It has launched various products and expanded distribution across the international markets.Let us delve deeper.Analyzing Monster Beverage’s StrengthsMonster Beverage has been driving performance for a while now. In third-quarter 20 ...

Have you assessed how the international operations of Monster Beverage (MNST) performed in the quarter ended September 2024? For this energy drink maker, possessing an expansive global footprint, parsing the trends of international revenues could be critical to gauge its financial resilience and growth prospects.In the modern, closely-knit global economic landscape, the capacity of a business to access foreign markets is often a key determinant of its financial well-being and growth path. Investors now plac ...

Core Insights - Monster Beverage Corporation's third-quarter 2024 results showed a decline in adjusted earnings per share to 40 cents, missing the Zacks Consensus Estimate of 42 cents, and a 2.4% decrease from the prior year [1] - Net sales reached $1.88 billion, reflecting a 1.3% year-over-year growth but falling short of the consensus estimate of $1.92 billion, with unfavorable currency translations impacting sales by $62.8 million [2] Sales Performance - The energy drink category in the U.S. experienced lower growth rates in the convenience channel, although improvements were noted in October, while the category is expanding more robustly across other retail channels [3] - Internationally, net sales rose 3.6% to $760.1 million, accounting for approximately 40.4% of total net sales, with a 12.1% increase on a currency-adjusted basis [6] Segment Analysis - Monster Energy Drinks segment sales increased by 0.8% to $1.72 billion, with a negative impact of $52.8 million from adverse currency rates, translating to a 3.9% growth on a currency-adjusted basis [7] - Strategic Brands segment saw a 14% year-over-year growth in net sales to $112.6 million, with a 24.1% increase on a currency-adjusted basis [8] - Alcohol Brands segment net sales fell 6% year-over-year to $39.8 million due to soft sales volume of craft beers [9] Cost and Margin Analysis - Cost of sales increased by 1% year-over-year to $881.2 million, with gross margin expanding by 20 basis points to 53.2%, driven by pricing actions and lower freight-in costs [10] - Operating expenses rose by 9.9% year-over-year to $519.9 million, influenced by higher sponsorship costs and payroll expenses, with operating expenses as a percentage of sales increasing by 210 basis points to 27.6% [11] Financial Health - The company ended the third quarter with cash and cash equivalents of $1.6 billion and total stockholders' equity of $5.8 billion, having repurchased 11.3 million shares for $534.7 million [13] - Monster Beverage's shares have gained 21.6% over the past three months, contrasting with a 3.8% decline in the industry [14]

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 ...

Financial Data and Key Metrics Changes - The company achieved record third quarter net sales of $1.88 billion in Q3 2024, a 1.3% increase from $1.86 billion in Q3 2023, and a 4.7% increase on a foreign currency adjusted basis [20] - Gross profit as a percentage of net sales for Q3 2024 was 53.2%, compared to 53% in Q3 2023, with gross profit negatively impacted by inventory reserves in the Alcohol Brands segment [21][22] - Net income decreased 18.1% to $370.9 million in Q3 2024 compared to $452.7 million in Q3 2023, with diluted earnings per share decreasing 11.7% to $0.38 [26][27] Business Line Data and Key Metrics Changes - The Alcohol Brands segment reported net sales of $39.8 million in Q3 2024, a decrease of approximately $2.5 million or 6% compared to the previous year, primarily due to lower sales of craft beers [63] - Operating expenses for Q3 2024 were $519.9 million, up from $473.2 million in Q3 2023, driven by increased payroll and legal expenses [23] Market Data and Key Metrics Changes - In EMEA, net sales increased 6.8% in dollars and 10.4% on a currency neutral basis in Q3 2024 compared to the same period in 2023 [55] - In Latin America, net sales decreased 5% in dollars but increased 20.1% on a currency neutral basis over the same period [61] - In Brazil, net sales increased 16.7% in dollars and 33.3% on a currency neutral basis in Q3 2024 [62] Company Strategy and Development Direction - The company continues to expand its sales in non-Nielsen measured channels and has implemented a price increase in the U.S. effective November 1, 2024, while monitoring opportunities for further price increases internationally [78] - The company is optimistic about the long-term prospects for the Monster brand in China and India, with plans for further launches of affordable energy brands [81] Management's Comments on Operating Environment and Future Outlook - Management noted that the energy drink category continues to grow globally, with household penetration and per capita consumption expected to increase [77] - Management expressed confidence that the company has reached the bottom of the current market conditions and anticipates a recovery in consumer behavior [90] Other Important Information - The company purchased approximately 11.3 million shares of its common stock at an average price of $47.32 per share, totaling $534.7 million, with approximately $500 million remaining for repurchase [71] - The company faced challenges due to hurricanes impacting retail sales in certain states, but the exact impact on business remains undetermined [9][74] Q&A Session Summary Question: Expectations on pricing flow-through and state of the energy drink category - Management indicated that determining the impact of price increases on demand elasticity is complex and that there may have been some inventory pull-forward ahead of the price increase [84][86] Question: Inventory levels going into October - Management explained that inventory levels are managed based on distributor orders, and while some competitors faced inventory issues, the company has not experienced similar challenges [96] Question: Role of innovation in category improvement - Management acknowledged that while innovation contributes to consumption, the recent product launches have not significantly impacted overall trends yet [99]