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Shares of Monster Beverage (MNST) sink following an earnings report with "no teeth" that misses...

Shares of Monster Beverage (MNST) sink following an earnings report with "no teeth" that misses on the top and bottom lines. While revenue rose briskly on a year-over-year comparison, it wasn't enough to satisfy the thirst of investors looking for even more explosive growth. The company also saw gross profit margin as a percentage of sales slip 100 bps Y/Y to 51.8% during the period. MNST -10.5% AH. (PR)
Comments (9)
  • Christopher F. Davis
    , contributor
    Comments (1197) | Send Message
     
    It wasnt that bad of a quarter overall for the company, but it did miss. Im caught long. :(
    8 Aug 2012, 04:35 PM Reply Like
  • redarrow5150
    , contributor
    Comments (997) | Send Message
     
    No the ANALysts missed...MNST doesn't give guidance.
    8 Aug 2012, 04:52 PM Reply Like
  • redarrow5150
    , contributor
    Comments (997) | Send Message
     
    By the way "no teeth?" Clearly this guy did NOT listen to the CC in making this absurd statement.
    8 Aug 2012, 10:37 PM Reply Like
  • rroussell
    , contributor
    Comment (1) | Send Message
     
    I've been avid investor for over 30 years conducting my own research and selecting my own stocks.
    They missed. And there will be a sell off. I urge anyone interested in this company to read the full transcript. One has to understand the full picture. During the growth of any company there are developments that affect performance. Bumps in the road if you will. You will see them in the report. Companies learn from these experiences and most often don't repeat them. As is the case here with expansion into international markets. The full transcript also mentions that they are not likely to see a repeat of increased raw material costs moving forward. And that any dip in the stock is buying opportunity for the company in terms of a buy back. The certainly have the cash.
    Monster is still an excellent cash generating machine and their growth is still explosive.
    The recent Apple quarterly report had a similar pull back and the result was truly a buying opportunity. Look at the chart for the past month.
    Monsters sales and profit growth are still excellent in terms of the overall market and Monsters competitors. The company is still small and this kind of growth is highly likely to continue especially knowing the companies efforts to expand into foreign markets.
    My perspective is long term. The companies performance and management are solid and the long term story is still in tact.
    9 Aug 2012, 08:55 AM Reply Like
  • redarrow5150
    , contributor
    Comments (997) | Send Message
     
    Totally agree. A few items...1.) Stronger dollar hurt 2.) They incurred costs related to shipping and packaging items that were damaged. They even said this impacted gross margins which were below history of the company. During the CC they said if not for these costs incurred (no fault of management) gross margins actually would've INCREASED. They stated that gross margins in the U.S. grew from previous qtrs! Parts of Europe are becoming profitable while other regions losses were cut over half with that trend continuing. People are reading headlines without diving into the earnings report or CC. Finally these moron analysts keep harping about paying a dividend when Rodney more than hinted that money will be used to purchase a company to help with production and shipping!! The analysts talked about decelerating growth in June...but Rodney Sacks had to point out that July is +20% higher than last year!!! If you've read my previous posts about this company I've been dead on about what was going to happen. I would suspect by the end of the year they will announce a purchase to help with production in the Pacific rim area. Last thing this company needs to do right now is pay a dividend when expanding in several new markets.
    9 Aug 2012, 09:13 AM Reply Like
  • Christopher F. Davis
    , contributor
    Comments (1197) | Send Message
     
    I just submitted an article on the quarter. Stay tuned I fast tracked it so I hope its out within an hour.
    9 Aug 2012, 09:35 AM Reply Like
  • DanoX
    , contributor
    Comments (2603) | Send Message
     
    If you make more money (revenue-profits) this year in comparison to the same time last year you didn't miss. I have an oil company (Chesapeake) if you want buy it (I can get a bunch of dumb ass analysts certify it).
    9 Aug 2012, 02:50 PM Reply Like
  • Christopher F. Davis
    , contributor
    Comments (1197) | Send Message
     
    Im not sure how to respond to this because i agree with your first statement in general, but i cant tell if you are sarcastic (i beleive so) on the latter lol,.
    9 Aug 2012, 03:52 PM Reply Like
  • DanoX
    , contributor
    Comments (2603) | Send Message
     
    Being sarcastic, MNST has been and continues to one of the best run companies in its sector other than SAM in the last ten years.
    9 Aug 2012, 04:34 PM Reply Like
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