Monster Beverage Corporation (NASDAQ:MNST) Just Released Its First-Quarter Results And Analysts Are Updating ... - Yahoo Finance

As you might know, Monster Beverage Corporation (NASDAQ:MNST) recently reported its quarterly numbers. It looks like the results were a bit of a negative overall. While revenues of US$1.9b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 3.6% to hit US$0.42 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for Monster Beverage

Taking into account the latest results, the most recent consensus for Monster Beverage from 22 analysts is for revenues of US$7.88b in 2024. If met, it would imply a reasonable 7.4% increase on its revenue over the past 12 months. Per-share earnings are expected to swell 12% to US$1.81. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$7.94b and earnings per share (EPS) of US$1.80 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

There were no changes to revenue or earnings estimates or the price target of US$62.04, suggesting that the company has met expectations in its recent result. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Monster Beverage analyst has a price target of US$69.00 per share, while the most pessimistic values it at US$46.00. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's pretty clear that there is an expectation that Monster Beverage's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 9.9% growth on an annualised basis. This is compared to a historical growth rate of 13% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 5.1% per year. Even after the forecast slowdown in growth, it seems obvious that Monster Beverage is also expected to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Monster Beverage going out to 2026, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 1 warning sign for Monster Beverage you should be aware of.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Adblock test (Why?)