Does The Street Have Monster Beverage Figured Out?

Monster Beverage (NAS: MNST) is expected to report Q3 earnings on Nov. 7. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Monster Beverage's revenues will grow 21.7% and EPS will grow 25.0%.

The average estimate for revenue is $577.9 million. On the bottom line, the average EPS estimate is $0.55.


Revenue details
Last quarter, Monster Beverage booked revenue of $592.6 million. GAAP reported sales were 28% higher than the prior-year quarter's $462.1 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, EPS came in at $0.59. GAAP EPS of $0.59 for Q2 were 31% higher than the prior-year quarter's $0.45 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 51.8%, 100 basis points worse than the prior-year quarter. Operating margin was 28.6%, 10 basis points worse than the prior-year quarter. Net margin was 18.5%, 30 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $2.11 billion. The average EPS estimate is $1.99.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 1,849 members out of 2,016 rating the stock outperform, and 167 members rating it underperform. Among 526 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 491 give Monster Beverage a green thumbs-up, and 35 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Monster Beverage is outperform, with an average price target of $76.11.

The article Does The Street Have Monster Beverage Figured Out? originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. Motley Fool newsletter services recommend Monster Beverage. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Learn about investing from the comfort of your own home.

Portfolio Basics

Take the first steps to building your portfolio.

View Course »

Investment Strategies

Learn the strategies you need to build a winning portfolio

View Course »

Add a Comment

*0 / 3000 Character Maximum