Consumer Products

What to Expect From Monster Beverage Earnings

Chris Lange

Monster Beverage Corp. (NASDAQ: MNST) is set to report its fourth-quarter financial results after the markets close on Thursday. The consensus estimates from Thomson Reuters call for $0.82 in earnings per share (EPS) on $698.40 million in revenue. In the same period of the previous year, it posted EPS of $0.72 and $605.57 million in revenue.

This company was last seen with a market cap worth around $28 billion, and this isn’t even the best ever value for Monster. The company now counts Coca-Cola as a stakeholder of almost 17% of the company. Monster also is close to having $3 billion in liquidity and may average more than $500 million in operating cash flow in the next few years as Coca-Cola dominates its distribution.

Monster Beverage shares have risen enough over the past decade that it can claim whatever it wants to thwart any outside pressure. Monster’s 2014 annual report suggests that the company does not anticipate paying cash dividends in the foreseeable future, but that was before getting all that cash, and Monster has repurchased its stock before.

A few analysts weighed in on Monster prior to the earnings report:

  • Wells Fargo has an Outperform rating.
  • S&P Capital IQ has an Outperform rating.
  • Jefferies has a Neutral rating.
  • UBS has a Buy rating.

So far in 2016, Monster has underperformed the broad markets, with the stock down 11% year to date. Over the past 52 weeks, the stock is actually up about 6%.

Shares of Monster were trading down 0.9% at $131.25 on Thursday. The consensus price target is $162.93, and the 52-week range is $113.08 to $160.50.