The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Monster Beverage met expectations on revenue and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share improved significantly.
Margins improved across the board.
Monster Beverage booked revenue of $410.0 million. The eight analysts polled by S&P Capital IQ expected sales of $411.7 million on the same basis. GAAP reported sales were 29% higher than the prior-year quarter's $318.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.35. The nine earnings estimates compiled by S&P Capital IQ anticipated $0.37 per share. GAAP EPS of $0.35 for Q4 were 30% higher than the prior-year quarter's $0.27 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 52.3%, 70 basis points better than the prior-year quarter. Operating margin was 25.2%, 20 basis points better than the prior-year quarter. Net margin was 15.7%, 30 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $403.8 million. On the bottom line, the average EPS estimate is $0.34.
Next year's average estimate for revenue is $1.96 billion. The average EPS estimate is $1.84.
The stock has a three-star rating (out of five) at Motley Fool CAPS. Among 561 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 536 give Monster Beverage a green thumbs-up, and 25 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Monster Beverage is outperform, with an average price target of $48.33.
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