Hansen Natural’s Convoluted Earnings (HANS)

November 8, 2007 by Douglas A. McIntyre

Hansen Natural Corporation (NASDAQ:HANS) has posted an increase of 35.8% in gross sales to $277.8 million, while net sales for the quarter increased 38.4% to $247.2 million. Operating income was $73.4 million and net income was $45.8 million, or $0.46 per diluted share.  First Call had estimates at $0.49 EPS on $258.4 Million in revenues.

There are items in the numbers, but in all honesty this report is difficult to evaluate because of its "gross versus net" issues and no real indications for what to expect ahead.  The CEO Rodney Sacks said, "“The energy category continues to show strong growth over the prior year, and the Monster Energy® brand continued to increase its market share. In particular, sales of our Java Monster™ line of non-carbonated dairy based coffee drinks have exceeded our expectations.”

The company also offered no guidance.  Its conference call is not until 2:30 PM EST today and we’ll have to wait until we hear from the company before a major declaration here.  But the entire syntax and order of this press release is quite irritating, and not at all a normal company press release.  After having evaluated and analyzed press releases for over 15 years, I’d personally like to suggest to Mr. Sacks that he and his investor relations and communications departments take themselves to press release boot camp so they can send a clear message.  The last conference call was after earnings was a bit hard to follow, but this earnings release takes the cake. 

Jon C. Ogg
November 8, 2007

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