The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Monster Beverage missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly. GAAP earnings per share expanded.
Margins dropped across the board.
Monster Beverage recorded revenue of $471.5 million. The seven analysts polled by S&P Capital IQ expected to see a top line of $483.6 million on the same basis. GAAP reported sales were 15% higher than the prior-year quarter's $410.0 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 $0.39. The nine earnings estimates compiled by S&P Capital IQ anticipated $0.41 per share. GAAP EPS of $0.39 for Q4 were 11% higher than the prior-year quarter's $0.35 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 51.7%, 60 basis points worse than the prior-year quarter. Operating margin was 24.2%, 100 basis points worse than the prior-year quarter. Net margin was 14.4%, 130 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $512.9 million. On the bottom line, the average EPS estimate is $0.49.
Next year's average estimate for revenue is $2.38 billion. The average EPS estimate is $2.31.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 1,834 members out of 1,990 rating the stock outperform, and 156 members rating it underperform. Among 533 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 507 give Monster Beverage a green thumbs-up, and 26 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 $61.22.
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