Hansen Chugging Earnings (HANS)

August 8, 2007 by Douglas A. McIntyre

Hansen Natural Corp. (NASDAQ:HANS) is gapping up pre-market after the company exceeded earnings estimates.  The company was expected to post $0.36 EPS on $217.65 million in revenues, but the 54% revenies gain put results over the top with $0.47 EPS before items (and still $0.39 net) with revenues topping $280 million.

Its Monster drinks are continuing to score new users, and its Java Monster(TM) brand non-carbonated dairy based coffee drinks (introduced in April 2007) and Monster® M-80 energy drinks (introduced in March 2007) appear to be adding additional growth machines ahead.  It looks like even the Anheuser-Busch (NYSE:BUD) distribution pact is now being viewed as a good thing. 

The company will hold an investor conference call at 2:30 PM EST today, and that will probably be a focus for more of what to expect ahead.  Shares are now up over 12% in pre-market trading around $47.00.  If this level holds, this will actually be a new 52-week high (although not an all-time high of $50+).  hansen no longer has that ludicrous P/E ratio as well, and if you add the results today and only give it a “meet guidance ahead” you’d end up with a forward P/E ratio for fiscal 2007 of roughly 31.  That’s for you to decide if it is worth it or not, but that is much more realistic than in the past.

Jon C. Ogg
August 8, 2007

Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.