Monster (MNST) Q1 Earnings Report Preview: What To Look For

Radek Strnad /
2024/05/01 3:13 am EDT

Energy drink company Monster Beverage (NASDAQ:MNST) will be reporting earnings tomorrow after market close. Here's what to expect.

Monster missed analysts' revenue expectations by 1.5% last quarter, reporting revenues of $1.73 billion, up 14.4% year on year. It was a slower quarter for the company, with a miss of analysts' earnings estimates.

Is Monster a buy or sell going into earnings? Read our full analysis here, it's free.

This quarter, analysts are expecting Monster's revenue to grow 12.1% year on year to $1.90 billion, in line with the 11.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.43 per share.

Monster Total Revenue

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Monster has missed Wall Street's revenue estimates five times over the last two years.

Looking at Monster's peers in the beverages and alcohol segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Keurig Dr Pepper delivered year-on-year revenue growth of 3.4%, beating analysts' expectations by 1.6%, and Constellation Brands reported revenues up 7.1%, topping estimates by 2%. Keurig Dr Pepper traded up 4.3% following the results while Constellation Brands was down 1%.

Read our full analysis of Keurig Dr Pepper's results here and Constellation Brands's results here.

Stocks--especially those trading at higher multiples--had a strong end of 2023, but 2024 has seen periods of volatility. Mixed inflation signals have led to uncertainty around rate cuts, and while some of the beverages and alcohol stocks have fared somewhat better, they have not been spared, with share prices down 3.6% on average over the last month. Monster is down 6.2% during the same time and is heading into earnings with an average analyst price target of $62.5 (compared to the current share price of $53.39).

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