Monster Beverage Retail Traders Stay Bullish Despite Surprise Q1 Revenue Fall: Here's What Analysts Say

The company attributed the decline to changes in ordering patterns of bottlers and distributors in the U.S. and Europe and foreign currency headwinds.

Monster Beverage (MNST) reported a surprise fall in quarterly revenue alongside lower-than-expected net profit on Friday.

"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," Co-CEO Hilton Schlosberg said.

Consumers also continue to hold back on discretionary spending, including energy drinks, as inflation remains elevated and economic uncertainty lingers.

Beverage giant Coca-Cola (KO) warned last month that macroeconomic uncertainty due to U.S. tariffs would hurt demand.

For the first quarter, Monster Beverage's revenue fell 2.3% to $1.85 billion, compared to the growth of 4.3% that analysts had expected, as per LSEG/Reuters estimates.

Adjusted profit was $0.45 per share, compared to estimates of $0.46.

UBS noted that the company's "tough" first quarter is balanced by what management describes as strong momentum in Q2. 

Meanwhile, Piper Sandler highlighted that recent price increases for Monster's drinks is supporting margins — a positive sign for profitability.

On Stocktwits, the retail sentiment rose to 'extremely bullish' from 'neutral' the week before.

However, there was significant skepticism among users on the platform. "I don't buy it," one said.

Monster Beverage stock is up 16.1% year to date.

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