In This Article:
Energy drink company Monster Beverage (NASDAQ:MNST) missed Wall Street’s revenue expectations in Q1 CY2025, with sales falling 2.3% year on year to $1.85 billion. Its non-GAAP profit of $0.47 per share was 2.2% above analysts’ consensus estimates.
Is now the time to buy Monster? Find out in our full research report.
Monster (MNST) Q1 CY2025 Highlights:
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Revenue: $1.85 billion vs analyst estimates of $1.98 billion (2.3% year-on-year decline, 6.3% miss)
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Adjusted EPS: $0.47 vs analyst estimates of $0.46 (2.2% beat)
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Operating Margin: 30.7%, up from 28.5% in the same quarter last year
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Market Capitalization: $59.06 billion
Hilton H. Schlosberg, Vice Chairman and Co-Chief Executive Officer, said, “Our first quarter revenues were impacted by a number of headwinds including bottler/distributor ordering patterns, unfavorable foreign currency exchange rates in certain markets, adverse weather in certain geographies as well as overall global economic uncertainties. Despite these headwinds, net sales excluding the Alcohol Brands segment, on a foreign currency adjusted basis, increased 1.9 percent in the quarter.
Company Overview
Founded in 2002 as a natural soda and juice company, Monster Beverage (NASDAQ:MNST) is a pioneer of the energy drink category, and its Monster Energy brand targets a young, active demographic.
Sales Growth
A company’s long-term performance is an indicator of its overall quality. Any business can put up a good quarter or two, but many enduring ones grow for years.
With $7.45 billion in revenue over the past 12 months, Monster is one of the larger consumer staples companies and benefits from a well-known brand that influences purchasing decisions.
As you can see below, Monster’s sales grew at a decent 8.6% compounded annual growth rate over the last three years. This shows its offerings generated slightly more demand than the average consumer staples company, a helpful starting point for our analysis.
This quarter, Monster missed Wall Street’s estimates and reported a rather uninspiring 2.3% year-on-year revenue decline, generating $1.85 billion of revenue.
Looking ahead, sell-side analysts expect revenue to grow 9.6% over the next 12 months, similar to its three-year rate. This projection is healthy and suggests the market sees success for its products.
Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.