Monster Beverage Corp. (NASDAQ: MNST) reported its first-quarter financial results after the markets closed Thursday. The company had $0.62 in earnings per share (EPS) on $710.2 million in revenue, compared to Thomson Reuters consensus estimates of $0.68 in EPS on $601.20 million in revenue. The first quarter from the previous year had $0.55 in EPS on $536.13 million in revenue.
The company did not give guidance for the coming quarter or the full year. There are consensus estimates of $0.96 in EPS on $803.06 million in revenue for the second quarter. The full year has consensus estimates of $3.36 in EPS on $2.90 billion in revenue.
Profitability was negatively impacted by $206 million of termination obligations as a result of distributor terminations.
Revenue was positively impacted by $39.8 million of acceleration of deferred revenue associated with the terminated distributors initial buyout contributions.
In August 2014, Monster and Coca-Cola Co. (NYSE: KO) entered into definitive agreements for a long-term strategic partnership to accelerate growth for both companies in the global energy drink category. The transaction is expected to close in the second quarter of 2015.
ALSO READ: The Least Healthy County in Each State
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.
As previously mentioned, The Coca-Cola Company transaction presents a unique opportunity for us. We anticipate that this relationship will provide us with complementary product offerings in many countries as well as access to new geographies, and access to new channels, including vending and specialty accounts. To date we have transitioned approximately 84 percent of our targeted distribution rights in the United States to The Coca-Cola Company and its distribution network, which was accomplished with minimal disruption in the retail trade. We expect to transition an additional 5 percent of the targeted volume during this month.
Shares of Monster closed Thursday up 2.1% at $143.49. After release of the financial results, shares were down 3.8% at $138.00 in after-hours trading. The stock has a consensus analyst price target of $148.60 and a 52-week trading range of $63.00 to $144.69.
Travel Cards Are Getting Too Good To Ignore (sponsored)
Credit card companies are pulling out all the stops, with the issuers are offering insane travel rewards and perks.
We’re talking huge sign-up bonuses, points on every purchase, and benefits like lounge access, travel credits, and free hotel nights. For travelers, these rewards can add up to thousands of dollars in flights, upgrades, and luxury experiences every year.
It’s like getting paid to travel — and it’s available to qualified borrowers who know where to look.
We’ve rounded up some of the best travel credit cards on the market. Click here to see the list. Don’t miss these offers — they won’t be this good forever.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.