NASDAQ$MNST

Monster Beverage Corp · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Monster Beverage reported record quarterly net sales and a 9.9 percent increase in net sales, reaching $1.25 billion for the third quarter of 2020. Net income increased by 16.3 percent to $347.7 million, with net income per diluted share rising by 19.6 percent to $0.65.

Monster Beverage Corporation reported a strong third quarter in 2020, marked by record net sales of $1.25 billion, a 9.9% increase year-over-year. Net income saw a 16.3% rise to $347.7 million, and diluted earnings per share increased by 19.6% to $0.65. The company's performance was driven by growth in its Monster Energy Drinks and Strategic Brands segments, despite the ongoing challenges posed by the COVID-19 pandemic.

  • Net sales for the third quarter increased by 9.9% to $1.25 billion compared to the same period last year.
  • Net income for the third quarter rose by 16.3% to $347.7 million, up from $298.9 million in the previous year.
  • Net income per diluted share for the third quarter increased by 19.6% to $0.65, compared to $0.55 in the third quarter of 2019.
  • The Monster Energy Drinks segment saw a net sales increase of 9.6% to $1.16 billion for the third quarter.

Headline financials

Total Revenue

$1.25B

Previous: $1.13B+9.9%
EPS (adj)

$0.33

Previous: $0.28+17.9%
Capital Expenditures

-$42.1M

Previous: -$44.4M+5.2%
Free Cash Flow

$896M

Previous: $808M+10.8%
Net Income

$938M

Previous: $853M+10.0%
Operating Income

$459M

Previous: $395M+16.0%
Gross Profit

$737M

Previous: $673M+9.4%
Cash & Equivalents

$1.07B

Previous: $718M+49.1%

Revenue & EPS history

Monster Beverage · Revenue · Quarterly

$1.25B

Q3 2020+9.9%vs Q3 2019
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Monster Beverage · $1.24B total across 3 segments · Q3 2020

  • Monster Energy Drinks
    $1.16B+9.4%
  • Strategic Brands
    $74.3M+12.1%
  • Alcohol Brands
    $8.6M+45.8%

Forward guidance

The COVID-19 pandemic remains a heightened threat with a number of countries, particularly in EMEA, reinstituting lockdowns and other restrictions; however, the Company does not foresee a material impact on the ability of its co-packers to manufacture and its bottlers/distributors to distribute its products as a result of the COVID-19 pandemic. In addition, the Company is not experiencing significant raw material or finished product shortages, and its supply chain remains intact. The Company is continually addressing its aluminum can requirements given the Company’s volume growth and the current supply constraints in the aluminum can industry.

Tailwinds

  • Supply chain remains intact and the company is continuing to service its customers.
  • The energy drink category continues to grow in most of the company's markets, including the United States.
  • The company launched a number of new Monster Energy® brand energy drinks, Reign Total Body Fuel® high performance energy drinks and its affordable energy brands in various domestic and international markets in the third quarter, as well as in early October 2020.
  • Company is not experiencing significant raw material or finished product shortages.
  • Company's flavor manufacturing facilities, its co-packers, warehouses and shipment facilities, are all operating.

Headwinds

  • EMEA remained adversely affected by the COVID-19 pandemic.
  • COVID-19 pandemic remains a heightened threat with a number of countries, particularly in EMEA, reinstituting lockdowns and other restrictions.
  • Company's food service on-premise business, which is a small channel for the Company, remained challenged.
  • Net changes in foreign currency exchange rates had an unfavorable impact on net and gross sales for the 2020 third quarter of $12.5 million and $11.9 million, respectively.
  • The Company’s sales in the 2020 second quarter were initially adversely affected as a result of a decrease in foot traffic in the convenience and gas channel (which is the Company’s largest channel).

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2020

Historical avgQ3 2020

+1.2%

Avg return

Earnings day

+1.5%

Avg return

5 days after

+2.1%

Avg return

30 days after

58%

40 / 69 earnings

Positive

+15.7%

Q1 2016

Best reaction

-19.9%

Q2 2012

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.6%+9.6%+16.1%
Q4 2025+1.5%-9.3%-17.1%
Q3 2025+5.1%+6.3%+11.2%
Q2 2025+0.0%-0.8%-2.6%
Q1 2025+1.5%+1.4%+5.4%
Q4 2024+5.3%+6.6%+11.4%
Q3 2024-0.6%+2.9%-4.0%
Q2 2024-11.4%-9.7%-4.2%
Q1 2024+2.7%+2.1%-3.0%
Q4 2023+5.3%+4.3%+5.6%
Q3 2023+7.6%+8.4%+6.9%
Q2 2023-4.4%-0.4%-1.9%
Q1 2023+2.3%+0.6%+1.9%
Q4 2022-3.0%-0.3%+2.6%
Q3 2022+6.8%+6.7%+13.4%
Q2 2022-4.9%-7.5%-8.0%
Q1 2022+0.0%-2.9%+2.5%
Q4 2021+6.5%+4.8%-0.9%
Q3 2021+4.9%+5.1%-4.1%
Q2 2021+5.4%+7.4%+6.1%
Q1 2021-3.4%-3.1%+1.0%
Q4 2020-0.6%-1.5%+3.9%
Q3 2020+0.7%-1.4%+5.7%
Q2 2020+6.8%+6.9%+6.2%
Q1 2020+7.3%+8.0%+17.8%
Q4 2019-5.3%-3.2%-14.4%
Q3 2019+3.9%+4.3%+7.2%
Q2 2019+3.3%-6.1%-5.0%
Q1 2019+8.9%+6.3%+6.8%
Q4 2018+8.7%+10.7%-7.1%
Q3 2018-1.2%-0.1%+4.8%
Q2 2018+2.0%+1.1%+0.9%
Q1 2018-7.9%-7.6%-0.9%
Q4 2017-15.5%-13.1%-10.8%
Q3 2017+1.3%+7.4%+9.2%
Q2 2017-1.6%+1.8%+6.6%
Q1 2017+5.6%+6.8%+14.1%
Q4 2016+14.3%+13.4%+11.4%
Q3 2016-6.3%-5.7%-7.6%
Q2 2016+3.0%+0.9%-2.5%
Q1 2016+15.7%
Q4 2015-1.2%
Q3 2015+13.1%
Q2 2015-3.2%
Q1 2015-8.5%
Q4 2014+14.0%
Q3 2014+9.3%
Q2 2014+5.2%
Q1 2014+2.9%
Q4 2013+4.2%
Q3 2013-4.7%
Q2 2013+2.0%
Q1 2013-5.6%
Q4 2012-1.3%
Q3 2012+1.8%
Q2 2012-19.9%
Q1 2012+9.6%
Q4 2011+0.7%
Q3 2011-4.7%
Q2 2011+11.0%
Q1 2010-0.7%
Q1 2011+1.2%
Q4 2008-3.7%
Q4 2010-3.7%
Q3 2010-2.8%
Q3 2009-2.8%
Q2 2010+1.6%
Q2 2009+1.6%
Q4 2009+1.6%

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