Monster Beverage Stock Surges as Q1 Results Beat Estimates

Strong first-quarter results

Monster Beverage (MNST) stock surged 6.5% in after-market hours trading on May 2 as the energy drink maker announced impressive results for the first quarter of 2019 after the markets closed yesterday. The stock was up 10% as of 10:47 AM EDT today.

Monster Beverage’s first-quarter sales grew 11.2% on a YoY (year-over-year) basis to $946 million. Analysts had been expecting sales of $914.1 million. Monster Beverage’s net sales were adversely affected by $22 million worth of unfavorable foreign currency movements.

Monster Beverage Stock Surges as Q1 Results Beat Estimates

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Monster Beverage’s net sales grew across all three of its segments: Monster Energy Drinks, Strategic Brands, and Others. Monster Beverage’s international net sales increased 17.4% to $284.1 million and accounted for 30.0% of the company’s overall sales, up from 28.5% in the first quarter of 2018.

In comparison, the revenue of larger rival PepsiCo (PEP) rose 2.6% to $12.9 billion in the first quarter of 2019 due to continued strength in its Frito-Lay North America division and organic growth in international markets.

Earnings in the first quarter

Monster Beverage’s first-quarter EPS rose 26.3% to $0.48 on a reported basis and 28.2% on an adjusted basis to $0.50. Analysts had expected it to see EPS of $0.42. The company’s bottom line growth was driven by higher sales, lower taxes, and a reduced average share count as a result of its share buybacks.

The company’s gross margin was flat at 60.6%, and its operating margin was also unchanged at 32.9% on a YoY basis in the first quarter.

Monster Beverage stock was up 17.8% on a year-to-date basis as of May 2.