The 10-second takeaway
For the quarter ended June 30 (Q2), Monster Beverage met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share increased significantly.
Gross margins dropped, operating margins grew, and net margins increased.
Monster Beverage reported revenue of $592.6 million. The seven analysts polled by S&P Capital IQ foresaw revenue of $596.1 million on the same basis. GAAP reported sales were 28% higher than the prior-year quarter's $462.1 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 $0.59. The eight earnings estimates compiled by S&P Capital IQ anticipated $0.61 per share. GAAP EPS of $0.59 for Q2 were 31% higher than the prior-year quarter's $0.45 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 51.8%, 100 basis points worse than the prior-year quarter. Operating margin was 28.6%, 50 basis points better than the prior-year quarter. Net margin was 18.5%, 30 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $591.1 million. On the bottom line, the average EPS estimate is $0.58.
Next year's average estimate for revenue is $2.13 billion. The average EPS estimate is $2.05.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 1,796 members out of 1,947 rating the stock outperform, and 151 members rating it underperform. Among 557 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 528 give Monster Beverage a green thumbs-up, and 29 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 $76.11.
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