What Happened?
Shares of energy drink company Monster Beverage (NASDAQ: MNST) jumped 6.7% in the morning session after 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.
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What Is The Market Telling Us
Monster’s shares are not very volatile and have only had 3 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 dropped 5.2% on the news that the company reported disappointing first quarter 2025 results: while gross margin beat expectations, revenue missed significantly. Revenue dropped over 2%, weighed down by fewer orders from distributors, currency hits overseas, and a sharp fall in alcohol-related sales. Management did point to stronger sales in April and solid retail numbers for energy drinks overall, which could mean things are turning around. Overall, this quarter could have been better.
Monster is up 23.8% since the beginning of the year, and at $64.77 per share, has set a new 52-week high. Investors who bought $1,000 worth of Monster’s shares 5 years ago would now be looking at an investment worth $1,580.
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