What Happened?
Shares of energy drink company Monster Beverage (NASDAQ: MNST) jumped 5.9% in the afternoon session after the company reported strong third-quarter financial results that surpassed Wall Street's expectations.
The energy drink maker posted revenue of $2.20 billion, up 16.8% year-on-year and beating analyst estimates of $2.11 billion. The company's bottom line was also impressive, with adjusted earnings per share (EPS) of $0.56 easily clearing the consensus forecast of $0.48. Profitability saw a significant boost as well; Monster's operating margin increased to 30.7%, a notable jump from 25.5% in the same quarter last year. The strong top- and bottom-line beats demonstrated the company's continued growth and operational efficiency, boosting investor confidence.
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What Is The Market Telling Us
Monster’s shares are not very volatile and have only had 4 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 3 months ago when the stock gained 6.7% on the news that reporting record-breaking second-quarter sales and profits that surpassed analyst expectations. The energy drink maker announced net sales of $2.11 billion for the second quarter, an 11.1% increase compared to the same period in 2024. This performance beat analyst expectations of $2.08 billion and marked the first time the company's quarterly revenue surpassed the $2 billion threshold. The company's adjusted earnings per share (EPS) also exceeded forecasts, coming in at $0.51 against an anticipated $0.48. Profitability also improved, with the gross profit margin rising to 55.7%, up from 53.6% in the prior year's quarter. Overall, the company beat expectations on several key metrics, including revenue, EPS, and EBITDA, driving positive investor sentiment.
Monster is up 33.4% since the beginning of the year, and at $69.80 per share, it is trading close to its 52-week high of $70.22 from October 2025. Investors who bought $1,000 worth of Monster’s shares 5 years ago would now be looking at an investment worth $1,716.
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