The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Monster Beverage missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share increased.
Margins contracted across the board.
Monster Beverage booked revenue of $541.9 million. The seven analysts polled by S&P Capital IQ expected to see revenue of $578.5 million on the same basis. GAAP reported sales were 14% higher than the prior-year quarter's $474.7 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 $0.47. The nine earnings estimates compiled by S&P Capital IQ forecast $0.55 per share. GAAP EPS of $0.47 for Q3 were 6.8% higher than the prior-year quarter's $0.44 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 50.5%, 220 basis points worse than the prior-year quarter. Operating margin was 26.0%, 180 basis points worse than the prior-year quarter. Net margin was 15.9%, 150 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $489.4 million. On the bottom line, the average EPS estimate is $0.43.
Next year's average estimate for revenue is $2.11 billion. The average EPS estimate is $1.99.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 1,851 members out of 2,016 rating the stock outperform, and 165 members rating it underperform. Among 528 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 493 give Monster Beverage a green thumbs-up, and 35 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 $70.38.
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