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Monster Beverage Corp Beats Earnings Estimates

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Monster Beverage Corp (NASDAQ:MNST) released its third quarter earnings report after closing bell tonight, posting earnings of 70 cents per share, 1 31.7% increase year over year, on $738.1 million in revenue, a 7.5% increase year over year. Analysts had been expecting earnings of 67 cents per share on $642.7 million in revenue for the quarter.

In the same quarter last year, the company reported earnings of 53 cents per share on $590.4 million in revenue, both of which were not as good as Wall Street had been hoping for.

Key metrics in Monster Beverage’s earnings report

Net sales for the quarter rose 7.7% to $636 million, compared to $590.4 million in the same quarter last year. Gross profit as a percentage of sales was 53.8%, compared to 52.1% in last year’s third quarter. Distribution costs as a percentage of net sales were 4.5%, compared to 4.6% in the same quarter last year. Gross international sales climbed to $173.2 million in the quarter, compared to last year’s $151.6 million. Operating income rose 25.4% to $189.9 million in the quarter.

Monster Beverage has been posting increasing profits for the last three consecutive quarters, making this year’s third quarter the fourth. The company’s revenue has also grown for the last three quarters, again making the third quarter the fourth.

The energy drink maker said that this year’s third quarter was impacted by expenses connected to regulatory and litigation matters. Those expenses were $4.9 million in the quarter.

Monster Beverage strikes a deal with Coca-Cola

In August, shares of Monster Beverage climbed after it was revealed that The Coca-Cola Company (NYSE:KO) had taken a 16.7% stake in it. The strategic partnership between the two beverage makers included a net cash payment to Monster of about $2.15 billion and a transfer of ownership to each other.

Coca-Cola will transfer its energy drink brands to Monster Beverage, and Monster will transfer its non-energy drink brands to Coke. On Monster’s earnings call tonight, investors will undoubtedly want to hear more about the partnership with Coca-Cola and how it will impact the company’s earnings going forward.

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