The Gory Details on Monster Beverage's Double Miss

Just the facts, Fool.

Seth Jayson
Seth Jayson
May 9, 2013 at 12:00AM
Other

Monster Beverage (Nasdaq: MNST) reported earnings on May 8. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Monster Beverage missed estimates on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue increased. Non-GAAP earnings per share didn't change. GAAP earnings per share contracted.

Margins shrank across the board.

Revenue details
Monster Beverage notched revenue of $484.2 million. The seven analysts polled by S&P Capital IQ hoped for sales of $501.7 million on the same basis. GAAP reported sales were 6.5% higher than the prior-year quarter's $454.6 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.41. The nine earnings estimates compiled by S&P Capital IQ anticipated $0.47 per share. Non-GAAP EPS of $0.41 were the same as the prior-year quarter. GAAP EPS of $0.37 for Q1 were 9.8% lower than the prior-year quarter's $0.41 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 52.1%, 100 basis points worse than the prior-year quarter. Operating margin was 22.2%, 510 basis points worse than the prior-year quarter. Net margin was 13.1%, 360 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)


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Looking ahead
Next quarter's average estimate for revenue is $651.3 million. On the bottom line, the average EPS estimate is $0.66.

Next year's average estimate for revenue is $2.32 billion. The average EPS estimate is $2.16.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 1,842 members out of 1,998 rating the stock outperform, and 156 members rating it underperform. Among 527 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 505 give Monster Beverage a green thumbs-up, and 22 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 $59.33.

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