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What's on the Cards for Monster Beverage (MNST) in Q2 Earnings?
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Monster Beverage Corporation (MNST - Free Report) is expected to report second-quarter 2023 results on Aug 3, after the closing bell. The beverage company is anticipated to have witnessed revenue and earnings growth in the to-be-reported quarter.
The Zacks Consensus Estimate for second-quarter revenues is pegged at $1.87 billion, indicating growth of 12.8% from that reported in the year-ago quarter. The consensus estimate for earnings of 39 cents per share suggests growth of 50% from the year-ago quarter’s actual. The consensus mark has moved up by a penny in the past 30 days.
In the last reported quarter, the company posted an earnings surprise of 11.8%. However, it has delivered a negative earnings surprise of 4.1%, on average, in the trailing four quarters.
Monster Beverage Corporation Price and EPS Surprise
Monster Beverage has been gaining from the continued strength in the energy drinks category and robust product innovation plans. It has been on track with price increases to wean the ongoing cost pressures. These are likely to have boosted the top and bottom-line performances in the second quarter.
On the last reported quarter’s earnings call, management was optimistic about the global energy drinks category. The company has been poised to gain from growth in the Monster Energy family of brands, and strength in Strategic and Affordable energy brands. Gains from these segments are likely to get reflected in the company’s second-quarter top line.
We expect revenues for the company’s Monster Energy Drinks segment to increase 10.7% year over year in second-quarter 2023. Meanwhile, the Strategic Brands and Alcohol Brands segments are predicted to deliver sales growth of 25.1% and 15.3%, respectively.
Monster Beverage has been committed to product launches and innovation to boost growth. The company has been introducing many products and expanding distribution in international markets, which have been aiding its performance.
At the end of the first quarter, the company initialized the phased launch of Monster Tour Water, a pure unflavored water line in still and sparkling variants, in the United States. In EMEA, as part of an ongoing pan-EMEA launch, the company distributed Monster Energy Lewis Hamilton 44 Zero Sugar. It also launched Fury, its affordable energy brand, in Egypt. The company revealed plans to transition the Monster brand to the Coca-Cola distribution system in the Philippines in the second quarter. Gains from these product launches are likely to get reflected in the company’s second-quarter results.
Monster Beverage has been implementing pricing actions to overcome the ongoing cost pressures. On its last reported quarter’s earnings call, it announced the implementation of additional price increases on a phased approach in the first half of 2023 in several international markets. Continued pricing actions are expected to have aided the company’s performance in the to-be-reported quarter.
However, Monster Beverage has been witnessing rising costs due to higher payroll expenses, as it is purchasing aluminum cans from local sources. MNST has been reeling under supply-chain headwinds due to the uncertain global environment.
Monster Beverage has been witnessing a significant increase in the cost of sales due to elevated supply-chain costs, which has been leading to a decline in the gross profit and the gross margin rate. Additionally, the increased payroll expenses and aluminum cans’ sourcing costs have resulted in higher SG&A expenses and operating costs. Our model predicts the cost of sales to increase 10.9% year over year in the second quarter, whereas operating expenses are estimated to rise 9%.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Monster Beverage this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Monster Beverage has a Zacks Rank #3 and an Earnings ESP of -4.05%.
Stocks Poised to Beat Earnings Estimates
Inter Parfums (IPAR - Free Report) has an Earnings ESP of +11.74% and sports a Zacks Rank of 1 at present. The Zacks Consensus Estimate for its second-quarter revenues is pegged at $309.1 million, which suggests growth of 26.3% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Inter Parfums’ quarterly earnings has moved up 8.6% in the past seven days to 88 cents per share, suggesting growth of 2.3% from the year-ago quarter’s reported number. IPAR’s earnings beat the consensus estimate in the trailing four quarters, delivering an earnings surprise of 37.2%, on average.
Coty (COTY - Free Report) has an Earnings ESP of +20.00% and a Zacks Rank #2 at present. The Zacks Consensus Estimate for its fourth-quarter fiscal 2023 revenues is pegged at $1.32 billion, which suggests growth of 13.4% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for COTY’s quarterly earnings has moved up by a penny in the past 30 days at 2 cents per share. The consensus estimate suggests an improvement from a loss of 1 cent reported in the year-ago quarter. COTY’s earnings beat the Zacks Consensus Estimate in the trailing four quarters, delivering an earnings surprise of 145%, on average.
Kellogg's (K - Free Report) has an Earnings ESP of +1.92% and a Zacks Rank of 3 at present. The Zacks Consensus Estimate for its second-quarter 2023 revenues is pegged at $4.1 billion, which suggests growth of 4.7% from the figure reported in the prior-year quarter.
The consensus estimate for Kellogg's quarterly earnings has been unchanged in the past 30 days at $1.11 per share, suggesting a decline of 5.9% from the year-ago quarter’s reported number. K’s earnings beat the Zacks Consensus Estimate in the trailing four quarters, delivering an earnings surprise of 9.6%, on average.
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What's on the Cards for Monster Beverage (MNST) in Q2 Earnings?
Monster Beverage Corporation (MNST - Free Report) is expected to report second-quarter 2023 results on Aug 3, after the closing bell. The beverage company is anticipated to have witnessed revenue and earnings growth in the to-be-reported quarter.
The Zacks Consensus Estimate for second-quarter revenues is pegged at $1.87 billion, indicating growth of 12.8% from that reported in the year-ago quarter. The consensus estimate for earnings of 39 cents per share suggests growth of 50% from the year-ago quarter’s actual. The consensus mark has moved up by a penny in the past 30 days.
In the last reported quarter, the company posted an earnings surprise of 11.8%. However, it has delivered a negative earnings surprise of 4.1%, on average, in the trailing four quarters.
Monster Beverage Corporation Price and EPS Surprise
Monster Beverage Corporation price-eps-surprise | Monster Beverage Corporation Quote
Key Factors to Note
Monster Beverage has been gaining from the continued strength in the energy drinks category and robust product innovation plans. It has been on track with price increases to wean the ongoing cost pressures. These are likely to have boosted the top and bottom-line performances in the second quarter.
On the last reported quarter’s earnings call, management was optimistic about the global energy drinks category. The company has been poised to gain from growth in the Monster Energy family of brands, and strength in Strategic and Affordable energy brands. Gains from these segments are likely to get reflected in the company’s second-quarter top line.
We expect revenues for the company’s Monster Energy Drinks segment to increase 10.7% year over year in second-quarter 2023. Meanwhile, the Strategic Brands and Alcohol Brands segments are predicted to deliver sales growth of 25.1% and 15.3%, respectively.
Monster Beverage has been committed to product launches and innovation to boost growth. The company has been introducing many products and expanding distribution in international markets, which have been aiding its performance.
At the end of the first quarter, the company initialized the phased launch of Monster Tour Water, a pure unflavored water line in still and sparkling variants, in the United States. In EMEA, as part of an ongoing pan-EMEA launch, the company distributed Monster Energy Lewis Hamilton 44 Zero Sugar. It also launched Fury, its affordable energy brand, in Egypt. The company revealed plans to transition the Monster brand to the Coca-Cola distribution system in the Philippines in the second quarter. Gains from these product launches are likely to get reflected in the company’s second-quarter results.
Monster Beverage has been implementing pricing actions to overcome the ongoing cost pressures. On its last reported quarter’s earnings call, it announced the implementation of additional price increases on a phased approach in the first half of 2023 in several international markets. Continued pricing actions are expected to have aided the company’s performance in the to-be-reported quarter.
However, Monster Beverage has been witnessing rising costs due to higher payroll expenses, as it is purchasing aluminum cans from local sources. MNST has been reeling under supply-chain headwinds due to the uncertain global environment.
Monster Beverage has been witnessing a significant increase in the cost of sales due to elevated supply-chain costs, which has been leading to a decline in the gross profit and the gross margin rate. Additionally, the increased payroll expenses and aluminum cans’ sourcing costs have resulted in higher SG&A expenses and operating costs. Our model predicts the cost of sales to increase 10.9% year over year in the second quarter, whereas operating expenses are estimated to rise 9%.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Monster Beverage this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Monster Beverage has a Zacks Rank #3 and an Earnings ESP of -4.05%.
Stocks Poised to Beat Earnings Estimates
Inter Parfums (IPAR - Free Report) has an Earnings ESP of +11.74% and sports a Zacks Rank of 1 at present. The Zacks Consensus Estimate for its second-quarter revenues is pegged at $309.1 million, which suggests growth of 26.3% from the figure reported in the prior-year quarter.
You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Inter Parfums’ quarterly earnings has moved up 8.6% in the past seven days to 88 cents per share, suggesting growth of 2.3% from the year-ago quarter’s reported number. IPAR’s earnings beat the consensus estimate in the trailing four quarters, delivering an earnings surprise of 37.2%, on average.
Coty (COTY - Free Report) has an Earnings ESP of +20.00% and a Zacks Rank #2 at present. The Zacks Consensus Estimate for its fourth-quarter fiscal 2023 revenues is pegged at $1.32 billion, which suggests growth of 13.4% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for COTY’s quarterly earnings has moved up by a penny in the past 30 days at 2 cents per share. The consensus estimate suggests an improvement from a loss of 1 cent reported in the year-ago quarter. COTY’s earnings beat the Zacks Consensus Estimate in the trailing four quarters, delivering an earnings surprise of 145%, on average.
Kellogg's (K - Free Report) has an Earnings ESP of +1.92% and a Zacks Rank of 3 at present. The Zacks Consensus Estimate for its second-quarter 2023 revenues is pegged at $4.1 billion, which suggests growth of 4.7% from the figure reported in the prior-year quarter.
The consensus estimate for Kellogg's quarterly earnings has been unchanged in the past 30 days at $1.11 per share, suggesting a decline of 5.9% from the year-ago quarter’s reported number. K’s earnings beat the Zacks Consensus Estimate in the trailing four quarters, delivering an earnings surprise of 9.6%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.