Energy drink company Monster Beverage (NASDAQ: MNST) will be reporting earnings this Thursday afternoon. Here’s what you need to know.
Monster beat analysts’ revenue expectations last quarter, reporting revenues of $2.54 billion, up 20.2% year on year. It was a strong quarter for the company, with a decent beat of analysts’ gross margin estimates and a decent beat of analysts’ adjusted operating income estimates.
Is Monster a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Monster’s revenue to grow 13% year on year, slowing from the 16.8% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Monster has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Monster’s peers in the beverages, alcohol, and tobacco segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Vita Coco delivered year-on-year revenue growth of 33.7%, beating analysts’ expectations by 6.1%, and Coca-Cola reported revenues up 7.6%, topping estimates by 3.7%. Vita Coco traded down 11% following the results while Coca-Cola was also down 1%.
Read our full analysis of Vita Coco’s results here and Coca-Cola’s results here.
There has been positive sentiment among investors in the beverages, alcohol, and tobacco segment, with share prices up 7% on average over the last month. Monster is up 7.8% during the same time and is heading into earnings with an average analyst price target of $49.93 (compared to the current share price of $46.90).
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