Shares of Monster Beverage (NASDAQ:MNST) jumped as much as 10.6% higher on Friday, following the release of highly caffeinated first-quarter results. By 3:30 p.m. EDT, the energy-drink maker's stock had settled down to an 8.9% gain.
For the first quarter of fiscal year 2019, your average analyst had been looking for earnings near $0.42 per share on sales in the neighborhood of $914 million. Monster beat the bottom-line estimates with earnings of $0.48 per share and crushed Wall Street's revenue projections with a $946 million total.
If those numbers weren't impressive enough, Monster also noted a $22 million headwind to its first-quarter sales from negative currency-exchange trends. The company's U.S. distribution has now been fully moved over to bottlers in the Coca-Cola (NYSE:KO) system, and Monster's energy drinks are in the midst of launching in several key territories around the globe.
On the earnings call, CEO Rodney Sacks also noted that the potential contract breach of Coke developing three new energy drinks under the flagship Coca-Cola brand has moved on to arbitration. A final decision should be reached before the end of the second quarter. The partnership is in no danger, though.
"We reiterate that whatever the outcome of the arbitration, we will continue to cooperate to work together as partners," Sacks said.
It's no surprise to see Monster's shares soaring on a classic earnings-and-revenue beat.