-- Company to Conduct Conference Call at 2 p.m. Pacific Time -- CORONA, Calif., July 31, 2025 (GLOBE NEWSWIRE) -- Monster Beverage Corporation (NASDAQ: MNST) announced today that results for its second quarter ended June 30, 2025, will be reported on Thursday, August 7, 2025, after the close of the market. The company also said that Chief Executive Officer, 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. ...

Core Insights - Monster Beverage Corporation (MNST) has shown resilience in a challenging global environment, effectively managing supply chain pressures and fluctuating input costs while expanding margins through strategic pricing and operational efficiency [1][2][3] Financial Performance - In Q1 2025, Monster Beverage's gross profit margin improved to 56.5% from 54.1% year-over-year, driven by pricing actions and supply chain optimization [2][7] - Operating income increased by over 5% year-over-year, aided by a reduction in distribution and warehouse costs as a percentage of sales [2][7] Strategic Initiatives - Management is aware of potential margin pressures from rising aluminum premiums but is implementing proactive strategies such as localized production and facility expansion in Brazil to mitigate these impacts [3] - The rollout of the AFF flavor facility in Ireland is expected to enhance regional operations, leading to lower costs and improved service levels across EMEA [3] Innovation and Market Positioning - The company is focusing on its innovation pipeline with new product launches aimed at expanding its premium product mix while also introducing affordable energy offerings in emerging markets [4] - By adapting pricing strategies and responding to consumer demand for functional products, Monster Beverage aims to protect and potentially grow its margins despite economic uncertainties [4] Stock Performance - Monster Beverage shares have appreciated 18.1% over the past year, outperforming the Zacks Beverages - Soft Drinks industry's decline of 1.9% and the broader Consumer Staples industry's return of 1.4% [5] - The stock is currently trading at a forward P/E multiple of 30.26X, which is a discount compared to the industry average of 17.92X, indicating potential value for investors [8]

Core Insights - The non-alcoholic beverage industry is transforming due to changing consumer preferences, with Coca-Cola and Monster Beverage Corp. as key competitors for market dominance [1][2] - Coca-Cola holds over 40% market share in carbonated soft drinks (CSD), while Monster commands nearly 30% of the global energy drink market [1][2] Coca-Cola (KO) - Coca-Cola's broad portfolio includes carbonated soft drinks, water, juice, and sports beverages, maintaining a strong market presence in over 200 countries with 30 billion-dollar brands [3][4] - In Q1 2025, Coca-Cola achieved 6% organic revenue growth and 2% unit case growth, alongside expanding gross and operating margins [4][8] - The company emphasizes health-conscious offerings, with one-third of its volume from low or no-calorie beverages, and leverages a vast distribution network to solidify its leadership [4][5] - Coca-Cola's digital engagement strategies and localized marketing efforts, particularly in emerging markets, enhance its brand relevance and consumer trust [6][7] - The company maintains a strong balance sheet and anticipates 2025 EPS growth of 2-3% and organic revenue growth of 5-6% despite tariff impacts [8][9] Monster Beverage Corp. (MNST) - Monster Beverage is a leader in the high-growth energy drink market, reporting a 5.1% increase in operating income and a 10.2% rise in adjusted EPS in Q1 2025 [10][14] - The company's international sales account for 40% of total revenues, with a gross margin of 56.5% driven by pricing and supply-chain optimization [10][14] - Monster's product innovation targets diverse consumer segments, including athletes and gamers, with a focus on affordability and demographic reach [11][12] - The company is expanding its product offerings and retail penetration through Coca-Cola's distribution network, despite challenges from its Alcohol Brands segment [12][13] - With no debt and $500 million authorized for share repurchases, Monster is positioned as a financially robust growth stock [14] Comparative Analysis - The Zacks Consensus Estimate suggests Coca-Cola's 2025 sales and EPS growth of 2.5% and 3.1%, respectively, while Monster's estimates indicate 5.8% sales growth and 14.8% EPS growth [15][17] - Coca-Cola trades at a forward P/E ratio of 22.34X, while Monster's is higher at 32.14X, reflecting its stronger growth potential [18][20] - Over the past year, Monster's stock has increased by 27.5%, outperforming Coca-Cola's 7.6% growth, indicating a preference for Monster among growth-oriented investors [20][21] Conclusion - Both Coca-Cola and Monster possess strong brands and resilient business models, but Monster's growth trajectory in the energy drink market positions it favorably for investors seeking high returns [21][22] - Monster's valuation premium reflects its consistent margin strength and market confidence in its expansion potential, making it a compelling choice for growth-focused investors [22]

Core Insights - Monster Beverage Corporation (MNST) shares have increased by 15.6% over the past three months, outperforming the Zacks Beverages - Soft drinks industry and the S&P 500 index, which grew by 1.5% and 7% respectively, indicating strong business strategies and market positioning [1][7]. Stock Performance - MNST stock is currently trading at $63.69, close to its 52-week high of $64.45 reached on May 28, 2025, suggesting a potential investment opportunity for those looking for long-term growth in the beverage sector [3]. - The stock shows solid momentum, remaining above its 200-day moving average, which reflects underlying strength and bullish sentiment among investors [4]. Financial Performance - In Q1 2025, Monster Beverage exceeded earnings expectations, with earnings per share surpassing forecasts, driven by improved gross margins from effective pricing strategies and supply-chain optimization [5][12]. - Consumer demand for energy drinks remains strong, with notable retail sales growth in the U.S. and international markets, including China, Australia, South Korea, and several European countries [6][9]. Challenges - The Alcohol Brands segment faced significant challenges, with net sales declining by 38.1% year-over-year due to reduced sales volumes and adverse currency impacts [10][11]. - The company is navigating a complex tariff landscape, with minimal impact on operating results in Q1, and is exploring mitigation strategies [8]. Future Outlook - The Zacks Consensus Estimate projects a 14.8% year-over-year increase in EPS for fiscal 2025, followed by an 11.8% increase in 2026, reflecting positive sentiment around the company's growth potential [12]. - Monster Beverage continues to innovate with new product launches, including the successful Monster Energy Ultra Blue Hawaiian, and aims to expand its affordable energy brands globally [9].

Financial Data and Key Metrics Changes - The preliminary voting results indicated that all director nominees were duly elected to serve until the 2026 annual meeting [21] - The selection of Ernst and Young LLP as the independent registered public accounting firm for the fiscal year ending 12/31/2025 was ratified by approximately 100% of the votes cast [22] - A nonbinding advisory vote on the compensation of the company's named executive officers was approved by approximately 94% of the votes cast [22] Business Line Data and Key Metrics Changes - The company launched several new products in the first quarter, including two new full sugar Monster flavors and various strategic brands in EMEA [27][28] - The Ultra family of products has been growing at over 20% [45] - The company is expanding its Predator brand in various markets, including a national rollout in China [29][56] Market Data and Key Metrics Changes - According to Nielsen, sales in the energy drink category increased by 12.5% year-over-year, with Monster's sales increasing by 10.1% [31] - In Mexico, Monster's sales increased by 17.6%, and its market share rose to 31.2% [34] - In EMEA, the energy drink category grew approximately 13.6% year-over-year, with Monster's market share increasing in several countries [35][36] Company Strategy and Development Direction - The company continues to focus on expanding its energy drink category while exploring opportunities in other beverage categories, including alcoholic beverages [52] - The upcoming launch of Blind Lemon, a new hard lemonade line, is part of the strategy to boost profitability in the Alcohol Brands division [53] - The company is optimistic about the long-term prospects for the Monster brand in China and is excited about the rollout of Predator [56] Management's Comments on Operating Environment and Future Outlook - Management noted a strong recovery in the U.S. energy category, driven by functionality, value proposition, and diverse offerings [43][44] - The company is focused on long-term value creation opportunities and optimizing trade spend [51] - Management expressed confidence in the company's growth strategy and innovation pipeline for 2026 and beyond [62] Other Important Information - The company highlighted that Nielsen data does not capture all sales channels, including foodservice and e-commerce [30] - The company acknowledged the impact of increased input costs and tariffs on aluminum but does not expect a significant impact on gross margins in the short term [49][50] Q&A Session Summary Question: Key factors behind the recovery and sustainability of revenue growth in the U.S. Energy category - Management attributed recovery to functionality, affordable value, image, and diverse offerings appealing to a broad consumer base [43][44] Question: Drivers of strong industry-wide scanner data and consumer preferences - Management noted growth from new consumers, particularly younger females, and a narrowing price differential between energy drinks and other beverages [47][48] Question: Strategy for protecting gross margins - Management discussed input cost increases and a hedging strategy for aluminum, emphasizing ongoing cost savings and pricing evaluations [49][50] Question: Role of Alcohol Brands division in overall strategy - Management stated the focus remains on energy drinks while exploring growth in alcoholic beverages, including the launch of Blind Lemon [52][53] Question: Update on dual brand price point strategy in China - Management highlighted optimism for the Monster brand in China and the rollout of Predator as a key growth driver [56][57] Question: Ongoing involvement of Rodney Sachs in the company - Management confirmed that Rodney Sachs will focus on marketing and innovation while remaining involved in legal matters [58][60]

Industry Overview - The Zacks Beverages – Soft Drinks industry is characterized by strong growth potential driven by rising consumer demand for healthier, functional, and eco-friendly beverages [1] - Companies are innovating and diversifying their portfolios to capture new market opportunities [1] - The industry is experiencing a digital transformation with brands adopting direct-to-consumer channels and subscription models to enhance customer relationships [1] Current Challenges - The industry faces persistent headwinds such as elevated input costs, supply-chain disruptions, and tariff-related uncertainties that pressure margins [2] - Rising packaging and freight expenses, along with volatile commodity prices, challenge profitability [2] - Newly imposed U.S. tariffs on imports from Canada and Mexico create additional financial pressure and uncertainty [6] Consumer Trends - There is a significant shift in consumer preferences towards healthier beverage options, including drinks made with natural ingredients and reduced sugar [4] - Plant-based beverages and functional drinks that promote hydration and energy are gaining popularity among health-conscious consumers [4] - Companies are expanding into adjacent categories, such as ready-to-drink alcoholic beverages, to capitalize on these trends [4] Digital Growth & Innovation - The industry is leveraging digital transformation to enhance consumer engagement and boost growth [5] - Brands are investing in direct-to-consumer platforms and subscription-based models to secure recurring revenue [5] - Product innovation remains a key growth driver, with companies refining their portfolios and launching new products [5] Financial Performance - The Zacks Beverages – Soft Drinks industry currently holds a Zacks Industry Rank of 63, placing it in the top 26% of over 250 Zacks industries, indicating bright near-term prospects [8] - The industry has underperformed the Consumer Staples sector and the S&P 500 Index over the past year, with a collective growth of 0.4% compared to the sector's 3.5% and the S&P 500's 11.9% [10] Valuation Metrics - The industry is currently trading at a forward 12-month price-to-earnings (P/E) ratio of 18.68X, compared to the S&P 500's 21.97X and the sector's 17.75X [13] - Over the past five years, the industry's P/E ratio has ranged from a high of 23.8X to a low of 17.22X, with a median of 21.45X [13] Notable Companies - **Coca-Cola (KO)**: Positioned for long-term growth through strategic transformation and digital investments, with a projected sales growth of 2.4% and earnings growth of 2.8% for 2025 [17][18] - **Zevia (ZVIA)**: Focused on zero-sugar, naturally sweetened drinks, with a projected sales growth of 3.4% and earnings growth of 38.7% for 2025 [21][22] - **Monster Beverage (MNST)**: Continues to perform well in the energy drinks category, with projected sales growth of 5.9% and earnings growth of 14.8% for 2025 [24][25] - **Keurig Dr Pepper (KDP)**: Expected to benefit from growth in the Refreshment Beverages segment, with projected sales growth of 5.6% and earnings growth of 6.3% for 2025 [28][29] - **Primo Brands (PRMB)**: Specializes in healthy hydration with a projected sales growth of 145.6% and earnings growth of 52.5% for 2025 [33]

Investment Rating - The report does not explicitly state an investment rating for the industry or specific companies Core Insights - Recent sales growth trends for non-alcoholic beverages have decelerated slightly, with overall dollar sales growth up +3.4% year-over-year for the two weeks ending May 17, 2025, compared to previous periods [1] - Pricing growth has softened to +2.7%, while volume growth remains stable at +0.7% year-over-year [1] - Energy drinks continue to show strong sales growth at +8.3% year-over-year, although this is a slight deceleration from previous periods [7] Summary by Category Carbonated Soft Drinks (CSDs) - Dollar sales growth in CSDs was up approximately +LSD% and stable sequentially, with pricing growth slightly stronger but offset by weaker volumes [2] - Coca-Cola Company and Pepsico Inc reported dollar sales growth of +2.7% and +0.3% respectively, with volume declines [9] Bottled Water - Dollar sales trends in bottled water were stable sequentially, with growth around +LSD% and stable pricing and volume growth [2] Energy Drinks - The energy drink category saw dollar sales growth of +8.3% year-over-year, with volume growth at +6.7% [7] - Monster Energy Co. (excluding Bang) reported dollar sales growth of +9.5% year-over-year, driven by stable volume growth [7] Salty Snacks - Dollar sales trends for salty snacks modestly accelerated to -0.9% year-over-year, with volume growth at -2.1% [8] - Pepsico Inc's salty snack sales growth was down -3.3% year-over-year [8] Specific Company Trends - PEP's dollar sales growth modestly accelerated sequentially, while MNST (excluding Bang) showed strong and stable growth at +HSD% [3] - KO's dollar sales growth remained stable at +MSD%, with stable volumes and pricing growth [3] - KDP's dollar sales growth was stable at +LSD%, with stronger pricing growth offset by softer volumes [3]

Core Viewpoint - The energy drinks market is highly competitive, with PepsiCo and Monster Beverage Corporation vying for dominance as consumer preferences evolve and the category diversifies [1][2]. Group 1: PepsiCo's Position - PepsiCo is leveraging its extensive distribution network and brand strength to assert itself in the energy drinks space, with a focus on high-growth segments like zero sugar and functional hydration [4][6]. - The company has made strategic acquisitions, such as Poppi, to tap into health-focused segments that overlap with energy drink consumers [5]. - Despite its strengths, PepsiCo faces challenges including soft top-line trends and cautious consumer sentiment in North America, influenced by inflation and value-conscious purchasing behavior [7]. Group 2: Monster Beverage's Position - Monster Beverage maintains a strong market presence with a diversified portfolio, achieving 2.2% sales growth in its core energy drinks segment in Q1 2025 [8][10]. - Innovation is central to Monster's strategy, with successful product launches like Monster Energy Ultra Blue Hawaiian contributing to its category leadership [9]. - The company is expanding its affordable energy offerings in international markets, which accounted for approximately 40% of total revenues in Q1 2025 [10][11]. Group 3: Financial Performance and Valuation - Year-to-date, PepsiCo shares have declined by 14.4%, while Monster's shares have increased by 20.1%, reflecting differing market sentiments [12]. - PepsiCo trades at a forward P/E multiple of 16.16X, while Monster's is significantly higher at 32.44X, indicating differing growth expectations [13][16]. - Earnings estimates for PepsiCo have been revised downwards, while Monster's estimates have seen upward revisions, suggesting growing investor optimism for Monster [17][21].

Core Viewpoint - Monster Beverage (MNST) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][4]. Earnings Estimates and Ratings - The Zacks rating system is based solely on a company's changing earnings picture, tracking the Zacks Consensus Estimate for EPS from sell-side analysts [2]. - The recent upgrade reflects an improvement in Monster Beverage's earnings outlook, which is expected to lead to increased buying pressure and a rise in stock price [4][6]. Impact of Earnings Estimate Revisions - Changes in a company's future earnings potential, as indicated by earnings estimate revisions, are strongly correlated with near-term stock price movements, particularly due to institutional investors' reliance on these estimates for valuation [5]. - For Monster Beverage, the rising earnings estimates signify an improvement in its underlying business, which should positively influence its stock price [6]. Specific Earnings Projections - For the fiscal year ending December 2025, Monster Beverage is projected to earn $1.86 per share, reflecting a 14.8% increase from the previous year [9]. - Over the past three months, the Zacks Consensus Estimate for Monster Beverage has risen by 1.7%, indicating a trend of increasing analyst estimates [9]. Zacks Rank System Overview - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [8]. - The upgrade to Zacks Rank 2 places Monster Beverage in the top 20% of Zacks-covered stocks, suggesting a strong potential for market-beating returns in the near term [11].

Core Insights - Monster Beverage Corporation (MNST) has shown strong momentum, with shares rising 3.6% after the release of first-quarter 2025 results, reaching a 52-week high of $62.46 [1][6] - The company's growth is driven by increased household penetration and rising per capita consumption of energy drinks, particularly in the U.S. market [2][7] - Monster Beverage's stock performance has outpaced the broader Consumer Staples sector, which declined by 3.5% [3] Financial Performance - In Q1 2025, adjusted EPS (excluding Alcohol Brands) increased by 10.2% year over year to 47 cents, exceeding expectations [6] - Gross margin improved by 240 basis points to 56.5%, attributed to effective pricing strategies and supply chain optimization [6] - The Zacks Consensus Estimate for MNST's 2025 sales and EPS indicates year-over-year growth of 5.9% and 14.8%, respectively [10] Market Dynamics - The U.S. energy drinks category grew by 10% year over year, with Monster's retail sales rising 8.7% for the 13 weeks ending April 26, 2025 [7] - The company is expanding its global footprint, with notable sales increases in China, Australia, and South Korea, as well as market share gains in several European countries [7] - The impact of tariffs on operating results was minimal, and the company is exploring mitigation actions [8] Analyst Sentiment - The Zacks Consensus Estimate for MNST's 2025 EPS rose by a penny in the last week, indicating analyst optimism [9] - The stock currently holds a Zacks Rank of 2 (Buy), reflecting strong market momentum and operational excellence [12]