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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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Motley Fool newsletter services have recommended buying shares of Monster Beverage. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.