Monster Beverage (NASDAQ:MNST) Releases Quarterly Earnings Results, Beats Expectations By $0.02 EPS

Monster Beverage (NASDAQ:MNST) issued its earnings results on Thursday. The company reported $0.60 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.58 by $0.02, FiscalAI reports. Monster Beverage had a net margin of 23.08% and a return on equity of 26.91%. The business had revenue of $2.50 billion for the quarter, compared to analyst estimates of $2.43 billion. During the same quarter in the prior year, the business posted $0.52 EPS. The company’s revenue for the quarter was up 20.2% on a year-over-year basis.

Here are the key takeaways from Monster Beverage’s conference call:

• Record quarterly sales and earnings growth: Net sales rose 20.2% to $2.54 billion, while adjusted operating income increased 13.3% and adjusted diluted EPS grew 15.2% to $0.60. Sales increased double digits across every geographic region.
• Broad-based international momentum: Foreign-currency-adjusted sales increased 29% internationally, led by LATAM at 40.4%, APAC at 36.7%, and EMEA at 22.2%. Management cited share gains, innovation, stronger Coca-Cola bottler execution, and particularly strong growth in Brazil, China, and India.
• Innovation and distribution are supporting recruitment: U.S. market share for the Monster brand family increased 70 basis points, with Ultra sales up 19% and Juice Monster up 26%; the limited-time Ultra Red, White, and Blue offering reached 5% of scanner sales after its national launch. The company is also expanding food-service and on-premise distribution through opportunities such as Marriott.
• Higher operating costs pressured profitability: Distribution expenses rose sharply due to freight and fuel, while selling expenses increased substantially because of expanded marketing, sponsorships, and digital campaigns. Aluminum costs are expected to rise modestly through at least the end of 2026, although management plans to offset inflation through selective pricing and hedging.
• Near-term sales trends and pricing remain favorable: July sales excluding alcohol increased approximately 13.9% on a foreign-currency-adjusted basis, and the company is pursuing selective U.S. pricing actions in the fourth quarter alongside additional pricing in certain international markets. Management also said approximately $900 million remains available under its share-repurchase authorization, though no shares were repurchased during the quarter.

Monster Beverage Price Performance

Shares of MNST traded down $3.80 during trading hours on Friday, reaching $90.36. 8,503,845 shares of the company’s stock traded hands, compared to its average volume of 5,641,748. The firm has a market capitalization of $88.37 billion, a price-to-earnings ratio of 41.83, a P/E/G ratio of 2.94 and a beta of 0.53. Monster Beverage has a twelve month low of $60.97 and a twelve month high of $100.34. The business’s fifty day simple moving average is $94.34 and its two-hundred day simple moving average is $84.75.

Monster Beverage’s stock is going to split on the morning of Tuesday, August 11th. The 2-1 split was announced on Wednesday, July 8th. The newly created shares will be payable to shareholders after the closing bell on Monday, August 10th.

Insider Activity at Monster Beverage

In related news, insider Emelie Tirre sold 10,000 shares of the stock in a transaction dated Thursday, May 14th. The shares were sold at an average price of $85.74, for a total value of $857,400.00. Following the completion of the transaction, the insider owned 71,763 shares in the company, valued at $6,152,959.62. This represents a 12.23% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. Also, CEO Guy Carling sold 19,000 shares of the stock in a transaction dated Wednesday, June 10th. The shares were sold at an average price of $90.90, for a total transaction of $1,727,100.00. Following the completion of the transaction, the chief executive officer owned 21,863 shares of the company’s stock, valued at $1,987,346.70. This represents a 46.50% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 178,700 shares of company stock worth $15,457,562. 8.10% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in MNST. Sivia Capital Partners LLC boosted its holdings in Monster Beverage by 247.7% during the second quarter. Sivia Capital Partners LLC now owns 12,986 shares of the company’s stock worth $813,000 after buying an additional 9,251 shares in the last quarter. DV Equities LLC bought a new position in shares of Monster Beverage in the fourth quarter valued at $76,000. Aster Capital Management DIFC Ltd bought a new position in shares of Monster Beverage in the fourth quarter valued at $131,000. Transamerica Financial Advisors LLC lifted its position in shares of Monster Beverage by 373.6% during the 4th quarter. Transamerica Financial Advisors LLC now owns 2,420 shares of the company’s stock valued at $186,000 after acquiring an additional 1,909 shares during the last quarter. Finally, Turning Point Benefit Group Inc. bought a new stake in shares of Monster Beverage during the 3rd quarter worth $101,000. 72.36% of the stock is currently owned by institutional investors.

Monster Beverage declared that its board has initiated a stock buyback program on Friday, May 15th that allows the company to repurchase $500.00 million in shares. This repurchase authorization allows the company to buy up to 0.6% of its shares through open market purchases. Shares repurchase programs are typically an indication that the company’s board believes its stock is undervalued.

More Monster Beverage News

Here are the key news stories impacting Monster Beverage this week:

• Positive Sentiment: Q2 results exceeded expectations: Monster reported earnings of $0.60 per share versus the $0.58 consensus estimate, while revenue rose 20.2% year over year to $2.50 billion, ahead of the $2.43 billion forecast. Monster Beverage earnings report
• Positive Sentiment: Broad-based growth remains intact: Energy-drink demand, international markets and the company’s core business drove the sales acceleration. Management also reported improving margins despite higher costs. Monster Beverage Q2 sales growth
• Positive Sentiment: Analysts raised price targets: Piper Sandler increased its target to $101 and maintained an overweight rating; Evercore raised its target to $105 with an outperform rating; and UBS lifted its target to $105 while retaining a neutral rating. These targets imply meaningful upside from the cited reference price. Piper Sandler price target
• Neutral Sentiment: Pricing actions are planned: Monster outlined selective pricing actions for the fourth quarter of 2026 and scheduled an investor meeting for December 1, which could provide additional details on strategy, margins and growth outlook. Monster pricing actions and investor meeting
• Negative Sentiment: Strong results were not enough to support the stock: The market reaction indicates elevated expectations may already have been reflected in MNST’s valuation. With a high earnings multiple and shares near their 12-month high, investors may be demanding stronger forward guidance or a larger earnings surprise.
• Negative Sentiment: Cost and execution risks remain: Rising costs continue to pressure profitability, while the company’s ability to sustain international growth and successfully implement pricing will be important to future earnings momentum.

Wall Street Analysts Forecast Growth

Several analysts recently weighed in on MNST shares. Evercore boosted their price objective on Monster Beverage from $95.00 to $105.00 and gave the company an “outperform” rating in a report on Friday. Rothschild & Co Redburn raised Monster Beverage from a “neutral” rating to a “buy” rating and increased their target price for the stock from $76.00 to $90.00 in a report on Wednesday, May 6th. Morgan Stanley set a $103.00 target price on Monster Beverage and gave the stock an “overweight” rating in a research report on Monday, June 1st. Wells Fargo & Company boosted their price target on Monster Beverage from $97.00 to $105.00 and gave the company an “overweight” rating in a report on Wednesday, July 8th. Finally, TD Cowen upped their price target on Monster Beverage from $90.00 to $95.00 and gave the company a “hold” rating in a research report on Wednesday, July 8th. Thirteen investment analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average price target of $95.55.

Monster Beverage Company Profile

Monster Beverage Corporation (NASDAQ: MNST) is an American beverage company best known for its Monster Energy brand of energy drinks. The company’s product portfolio centers on carbonated energy beverages and a range of complementary ready-to-drink offerings, including energy coffees, hydration beverages and other flavored functional drinks. Monster markets multiple sub-brands and flavor variants to address different consumer segments and consumption occasions.

Originally organized around the Hansen’s Natural line of juices and sodas, the company pivoted toward the energy drink category and formally adopted the Monster Beverage name in the early 2010s to reflect its strategic focus.