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.
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 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.
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.)
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.
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.
Is Monster Beverage the best beverage bet for you? Learn how to maximize your investment income and "Secure Your Future With 9 Rock-Solid Dividend Stocks," including one above-average beverage seller. Click here for instant access to this free report.
- Add Monster Beverage to My Watchlist.
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. The Motley Fool recommends Monster Beverage. The Motley Fool owns 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.