Yahoo Finance Will Energy Drinks Aid Monster Beverage's (MNST) Q1 Earnings?
Monster Beverage Corporation MNST is expected to report first-quarter 2024 results on May 2, 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 first-quarter revenues is pegged at $1.92 billion, indicating growth of 13.1% from the figure reported in the year-ago quarter. The consensus estimate for earnings of 44 cents per share suggests growth of 15.8% from the year-ago quarter’s actual. The consensus mark has been unchanged in the past 30 days.
In the last reported quarter, the company registered a negative earnings surprise of 2.6%. It has delivered an earnings surprise of 2.9%, 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 experiencing continued strength in its energy drinks category, which has been driving its performance. The company has been benefiting from the expansion of the energy drinks category and product launches. Product innovation has played a significant role in the company's success. This is expected to have boosted the top and bottom-line performances in the first quarter.
The company’s first-quarter performance is particularly expected to have witnessed continued positive trends in the Monster Energy family of brands, and strength in the Strategic and Affordable energy brands. The steady lineup of product launches is likely to have helped retain its business momentum. The company is anticipated to have reaped gains from its strong distribution network in international markets and investments in growth opportunities.
Price increases, along with lower freight-in costs and reduced aluminum can costs, have been contributing to robust margins. Management has been strategically adjusting its pricing in response to the ongoing inflationary cost pressures. These pricing actions have been designed to balance the need to offset increased costs, while maintaining customer loyalty and demand.
The company has been benefiting from its pricing actions across various regions to negate the impacts of rising commodity costs and inflation. MNST implemented price hikes in the fourth quarter of 2023, with additional price hikes planned in several other markets through 2024. These are expected to have bolstered margins and the top line in the to-be-reported quarter.
However, the beverage industry presents substantial challenges for Monster Beverage, primarily related to the dynamic retail and consumer landscape. The company has been witnessing rising costs. The shift in consumers’ preferences has been impacting the volumes of soda beverages and energy drinks. Its profits and margins have been particularly pressured due to higher product-mix costs and stepped-up advertising expenses.
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 is not the vase here. You can uncover the best stocks before they are reported with our Earnings ESP Filter.
Monster Beverage has an Earnings ESP of -2.33% and a Zacks Rank of 3.
Stocks With the Favorable Combination
Here are three companies worth considering, as our model shows that these have the correct combination to beat on earnings this time:
Church & Dwight Co. CHD has an Earnings ESP of +1.00% and a Zacks Rank of 3 at present. The company is slated to witness top and bottom-line growth when it reports first-quarter 2024 results. The Zacks Consensus Estimate for CHD’s quarterly revenues is pegged at $1.49 billion, which suggests growth of 4.3% from the figure reported in the year-ago quarter.
You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Church & Dwight’s quarterly earnings has been unchanged in the past 30 days at 86 cents per share. The consensus mark for earnings suggests growth of 1.2% from the year-ago quarter’s reported number. CHD has delivered an earnings surprise of 0.5%, on average, in the trailing four quarters.
Tyson Foods TSN currently has an Earnings ESP of +21.15% and a Zacks Rank of 3. The company is expected to register bottom-line growth when it reports first-quarter 2024 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $13.1 billion, which suggests a decline of 0.4% from the figure reported in the year-ago quarter.
The Zacks Consensus Estimate for Tyson Foods’ quarterly earnings has been unchanged in the past 30 days at 35 cents per share. The consensus mark for earnings suggests substantial growth from a loss of 4 cents per share reported in the year-ago quarter. TSN has delivered a negative earnings surprise of 21.1%, on average, in the trailing four quarters.
Coty COTY presently has an Earnings ESP of +4.23% and a Zacks Rank of 3. The company is expected to witness top-line growth when it reports first-quarter 2024 results. The Zacks Consensus Estimate for COTY’s quarterly earnings has been unchanged in the past 30 days at 6 cents per share. The consensus mark for earnings suggests a 68.4% decline from that reported in the year-ago quarter.
The Zacks Consensus Estimate COTY’s quarterly revenues is pegged at $1.37 billion, which indicates growth of 6.6% from the figure reported in the prior-year quarter. COTY has delivered an earnings surprise of 115.3%, on average, in the trailing four quarters.
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Church & Dwight Co., Inc. (CHD) : Free Stock Analysis Report
Tyson Foods, Inc. (TSN) : Free Stock Analysis Report
Monster Beverage Corporation (MNST) : Free Stock Analysis Report
Coty (COTY) : Free Stock Analysis Report
