Monster Beverage Stock Heads For Best Day In Over 2 Years After Upbeat Q2: Retail Traders Turn Extremely Bullish
Synopsis
Sales in Monster's flagship drink segment grew 11% to $1.94 billion, with the CEO noting that energy drinks are being purchased by more households.
Monster Beverage (MNST) shares surged 7.5% in premarket trading on Friday, a day after the energy drink maker's second-quarter report, which exceeded Wall Street's expectations.
MNST stock was among the top 10 gainers on the S&P 500 index before the bell, according to MarketWatch data. If the gains hold in the regular session, it would mark the stock's best performance since November 2022.
Monster's second-quarter revenue rose 11% to $2.11 billion, beating analysts' estimate of $2.08 billion from FactSet. Adjusted profit was $0.52, also higher than the analysts' estimate of $0.48.
"We achieved record net sales for the second quarter, exceeding the $2.0 billion mark for the first time," CEO Hilton Schlosberg said in a statement.
Following the earnings report, Piper Sandler had upgraded Monster Beverage to 'Overweight' from 'Neutral', according to The Fly, and raised its price target to $74 from $54, which implies a 23% jump from the last close.
On Stocktwits, the retail sentiment shifted to 'extremely bullish' as of early Friday, from 'neutral' the previous day, with some retail investors noting the low trading volume in the stock.
Sales in Monster's flagship drink segment grew 11% to $1.94 billion, while its strategic brands unit, largely made up of beverage labels acquired from Coca-Cola, saw a 19% rise to $129.9 million.
Revenue from its alcoholic beverages division declined 9% to $38 million.
Schlosberg noted that energy drinks are being purchased by more households, with per capita consumption also on the rise.
Rival Celsius Holdings, which also reported its results on Thursday, posted higher-than-expected revenue and profit for the last quarter. Its results were partly boosted by Alani Nutrition, a rival company Celsius acquired in April, and shares rose over 17% in the regular session.
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