Stocks under Review: Monster Beverage Corporation (NASDAQ:MNST)


Monster Beverage Corporation (NASDAQ:MNST) retreated -0.02% and closed its last session at $45.28. The stock has the market capitalization of $25.85 Billion with the total outstanding shares of 570.97 Million. Monster Beverage Corporation. has Analysts’ Mean Recommendation of 2.06 between the scale of 1 to 5 (1 represents Strong Buy and 5 means Sell). The stock currently has P/E of 40.54 for trailing twelve months while its Forward P/E is 30.07.

Monster Beverage Corporation (NASDAQ:MNST) touched its 52-Week High of $166.5 on Aug 5, 2016 while it’s 52-Week Low of $40.64 on Nov 14, 2016. The company currently has Return on Assets of 13.8 percent, Return on Equity of 16.6% and Return on Investment of 11.4 percent. The stock currently showing Weekly Volatility of 2.23%% and Monthly Volatility of 3.06% Percent with Average True Range of 1.19 and Beta of 0.82.

The 16 analysts offering 12-month price forecasts for Monster Beverage Corp have a median target of 55.00, with a high estimate of 61.00 and a low estimate of 41.00. The median estimate represents a +21.47% increase from the last price of 45.28.

Press Release:

The Company on 3 November reported financial results for the three- and nine-months ended September 30, 2016.


Third Quarter Results

Net sales for the 2016 third quarter increased 4.1 percent to $788.0 million from $756.6 million in the same period last year. Gross sales for the 2016 third quarter increased 5.9 percent to $913.3 million, from $862.4 million in the same period last year.  The comparative gross and net sales of $862.4 million and $756.6 million, respectively, for the 2015 third quarter were impacted by advance purchases made by the Company’s customers due to a pre-declared price increase, effective August 31, 2015, (“Advance Purchases”), on certain of the Company’s Monster Energy® brand energy drinks.  The Company estimates that gross and net sales for the 2015 third quarter increased by approximately $12.0 million and $11.0 million, respectively, as a result of such Advance Purchases. Gross and net sales for the 2016 third quarter, after adjusting the 2015 third quarter comparatives for Advance Purchases, increased by 7.4 percent and 5.7 percent, respectively. Unfavorable currency exchange rates reduced gross sales by approximately $4.8 million and net sales by approximately $2.6 million in the 2016 third quarter.

Net sales for the Company’s Monster Energy® Drinks segment, which is comprised of the Company’s Monster Energy® drinks as well as MutantTM Super Soda, increased 3.4 percent to $710.1 million for the 2016 third quarter, from $686.7 million for the same period last year.  Net sales for the Company’s Strategic Brands segment, which include the various energy drink brands acquired from The Coca-Cola Company, increased 3.2 percent to $72.1 million for the 2016 third quarter, from $69.9 million in the comparable 2015 quarter.  Net sales for the Company’s Other segment, which includes certain products of American Fruits & Flavors sold to independent third parties, were $5.7 million for the 2016 third quarter. There were no net sales for the Other segment for the 2015 third quarter.

Company Profile:

Based in Corona, California, Monster Beverage Corporation is a holding company and conducts no operating business except through its consolidated subsidiaries. The Company’s subsidiaries market and distribute energy drinks, including Monster Energy(R) energy drinks, Monster Energy Extra Strength Nitrous Technology(R) energy drinks, Java Monster(R) non-carbonated coffee + energy drinks, M3(R) Monster Energy(R) Super Concentrate energy drinks, Monster Rehab(R) non-carbonated energy drinks with electrolytes, Muscle Monster(R) Energy Shakes, Ubermonster(R) energy drinks, NOS(R) energy drinks, Full Throttle(R) energy drinks, Burn(R) energy drinks, Samurai(R) energy drinks, Relentless(R) energy drinks, Mother(R) energy drinks, Power Play(R) energy drinks, BU(R) energy drinks, Nalu(R) energy drinks, BPM(R) energy drinks, Gladiator(R) energy drinks, and Ultra(R) energy drinks.