Monster Beverages (MNST) came out with quarterly earnings of $0.51 per share, which did not exceed the Jacques consensus estimate of $0.68 per share. That compared to earnings of $0.75 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -25%. A quarter ago, it was expected that this energy drink maker would post earnings of $0.60 per share when it actually produced earnings of $0.55, a surprise of -8.33%.
In the last four quarters, the company has not been able to exceed the consensus EPS estimates.
Monster Beverages, which belongs to the Jacques Beverages — soft drink industry, posted revenue of $1.66 billion for the quarter ended June 2022, exceeding the Jacques consensus estimate by 2.57%. This compared to last year’s revenue of $1.46 billion. In the last four quarters, the company has topped the consensus revenue estimates four times.
The stability of the stock’s immediate price movement will depend mostly on management’s comments on the earnings call, based on recently released numbers and expectations for future earnings.
Shares of Monster Beverages are up nearly 0% since the start of the year, while the S&P 500 is down -12.8%.
What’s next for Monster Beverages?
While Monster Beverages has outperformed the market so far this year, the question that comes to investors’ minds is: What’s next for the stock?
There’s no easy answer to this key question, but a reliable measure that can help investors address it is a company’s earnings outlook. This includes not only the current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed recently.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings forecast revision. Investors can track such modifications themselves or rely on a tried-and-tested rating tool such as Zacks Rank, which has an impressive track record of harnessing the power of earnings forecast revisions.
Prior to this earnings release, estimate revision trend for Monster Beverage: Mixed. While the magnitude and direction of the estimate revision may change following the company’s most recently released earnings report, the current position translates to Jacques Rank #3 (Hold) for the stock. Hence, the shares are expected to perform in line with the market in the near future. You can see the full list of today’s Jax #1 ranked (strong buy) stocks here.
It will be interesting to see how the projections for the coming quarters and the current fiscal turn out in the coming days. The current consensus EPS estimate is $0.71 on revenue of $1.65 billion for the coming quarter and $2.67 on revenue of $6.4 billion for the current fiscal year.
Investors should be mindful of the fact that industry outlook can also have a significant impact on a stock’s performance. In terms of Jax Industry Rank, Beverages – Soft Drinks is currently in the top 30% of over 250 Zacks industries. Our research shows that the top 50% of JAX-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Alkaline Water Company Inc (WTEER), another stock in the same industry, is yet to report results for the quarter ended June 2022.
This company is expected to post a quarterly loss of $0.05 per share in its upcoming report, which represents a year-over-year change of +37.5%. The consensus EPS estimate for the quarter has been revised upwards by 16.7 per cent over the last 30 days to the current level.
Alkaline Water Company Inc. Revenue is expected to be $16.94 million, up 20% from the year-ago quarter.
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