Monster Beverage Posts Lower Q1 Earnings, Shares Down

Shares of

tumbled over 4 percent in pre-market trading after the company reported weaker-than-expected earnings for the first quarter on Thursday. The Corona, California-based company posted quarterly net income of $4.4 million, or $0.03 per share, versus $95.2 million, or $0.55 per share, in the year-ago quarter. Excluding one-time items, the company earned $0.62 per share. Its net sales for the quarter were $626.8 million, while sales, excluding acceleration of deferred revenue, rose 9.5 percent to $587.0 million from $536.1 million. Analysts were expecting a profit of $0.68 per share on revenue of $601.2 million. Net sales to customers outside the United States slipped to $113.0 million in the first quarter, from $115.8 million in the year-ago quarter. Operating expenses were $361.3 million for the first quarter. Excluding acceleration of deferred revenue, selling expenses as a percentage of net sales narrowed to 10.6 percent from 10.7 percent, while distribution costs shrank to 4.4 percent from 4.7 percent. Rodney C. Sacks, Chairman and Chief Executive Officer, said: "We are pleased to report another quarter of sales growth, however the strength of the U.S. dollar somewhat impacted our international revenues. During the quarter, we launched Monster Energy(R) Ultra Citron(TM) and Monster Rehab(R) Peach Tea + Energy, which have been well received by our consumers." Monster Beverage shares fell 4.87 percent to $136.50 in pre-market trading.