Monster Beverage (MNST) Q1 Earnings, Revenues Top Estimates
Zacks Investment Research | May 04, 2017 09:46PM ET
Monster Beverage Corporation (NASDAQ:MNST) reported first-quarter 2017 results, wherein both earnings and revenues surpassed expectations. The company also came up with higher sales and impressive margins.
Monster Beverage’s first-quarter adjusted earnings of 33 cents per share beat the Zacks Consensus Estimate of 32 cents by a penny. Earnings also increased 26.9% year over year on higher sales.
Sales Detail
Net sales of $742.1 million surpassed the Zacks Consensus Estimate of $741.4 million by 0.1%. The figure improved 9.1% year over year.
Foreign currency had an unfavorable impact of $3.7 million on quarterly net sales.
Net sales outside the U.S. increased 28% to $190.9 million in the quarter on a year-over-year basis.
Quarterly Segment Details
Monster Energy Drinks Segment: Net sales at the segment, comprising Monster Energy drinks as well as Mutant Super Soda drinks, were $668.6 million, up 7.5% year over year.
Strategic Brands segment: This segment includes brands acquired from Coca-Cola. Net sales at the segment increased 16.4% to $68 million in the quarter.
Other: Net sales for the company's Other segment, which includes some products of American Fruits & Flavors sold to independent third parties, were $5.5 million in the quarter under review. Notably, the segment had reported no net sales in the prior-year quarter.
Margins
First-quarter 2017 gross margin rose 260 basis points (bps) to 64.8%. Operating expenses increased 28.6% year over year to $216.6 million. Operating income in the quarter was $264.3 million, up 3.8% year over year.
Financials
Monster Beverage ended the quarter with cash and cash equivalent of $576.3 million as of Mar 31, 2017 compared with $377.6 million as of Dec 31, 2016.
Monster Beverage carries a Zacks Rank #3 (Hold). You can see Zacks Investment Research
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