The Monster Created By Wall Street
Citron Research • 25 Comments
Citron Research • 25 Comments
Tue, Mar. 29, 1:25 PM
- The carbonated soft drinks market fell 1.2%, according to data from Beverage Digest. On a per capita basis, consumption of soft drinks fell to its lowest level since 1985 (650 8/oz servings).
- 2015 brand rankings: 1. Coke 2. Pepsi 3. Diet Coke 4. Dr Pepper 5. Mountain Dew
- The overall liquid beverage refreshment industry was up 2.2% as companies used innovation in other categories (energy, juice, premium water) to stoke growth.
- Related stocks: KO, PEP, DPS, MNST.
Wed, Mar. 16, 2:07 PM
- U.K. Chancellor George Osbourbe announced a sugar tax in a new budget released by his party.
- The proposed tax covers any soft drink with more than 5 grams of sugar per 100 milliliters, although milk drinks are exempt due to their "health" benefit. Pure fruit juices are also set aside from the sugar tax group.
- London-traded A.G. Barr, Britvic (OTC:BTVCF), and Nichols fell today in reaction to the development.
- Related U.S. beverage stocks: KO, PEP, DPS, COT, MNST.
Wed, Mar. 16, 7:23 AM
- Goldman Sachs adds Monster Beverage (NASDAQ:MNST) to its Conviction Buy List group of stocks.
- The investment firm assigns a price target of $160 to the beverage stock.
- What's good for Monster is also good for Coca-Cola (NYSE:KO) which holds a sizable stake in the company.
- MNST hasn't opened for trading yet. Shares are down 11% YTD.
Thu, Feb. 25, 7:45 PM
- Monster Beverage (NASDAQ:MNST) fell 7% AH after reporting distributor issues led to weaker results than anticipated.
- "Distributor transitions and uncertainties in portions of our international non-Coca-Cola distribution network limited further revenue growth during the quarter," said CEO Rodney Sacks.
- The company was also stung by the high level of customer orders pulled forward into Q3 to jump ahead of a price hike.
- The missed sales led to Monster's operating expenses jumping 420 bps to 27.1% of sales.
- Shares of Monster may have dropped even further if not for the new $1.75B share repurchase plan that was unveiled. Results at Monster aren't enough to seriously move the needle at Coca-Cola (NYSE:KO), although some of company's global energy drinks strategy is focused on the brand.
- Previously: Monster Beverage misses by $0.14, misses on revenue (Feb. 25)
Thu, Feb. 25, 5:45 PM
Thu, Feb. 25, 4:17 PM
Wed, Feb. 24, 5:35 PM
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Tue, Feb. 23, 4:37 PM
- "The acquisition brings Monster's primary flavor supplier in-house and secures Monster's ownership of the unique intellectual property created with AFF for its flagship Monster Energy energy drinks as well as several other key flavors in its beverage portfolio," says Monster Beverage (NASDAQ:MNST) while discussing its $690M purchase of American Fruits & Flavors. (Press Release)
- The energy drink maker adds it's acquiring ~$87M in 2015 adjusted op. income, and that AFF has delivered an 8% organic revenue CAGR over the last four years. Monster accounted for 87% of AFF's 2015 revenue.
- CEO Rodney Sacks: "Not only have we secured the intellectual property of our flagship green energy drink and many of our other key flavors, but we are also partnering with an organization I have personally worked with and known for over 20 years ... This transaction provides Monster a unique opportunity to leverage new flavor technologies and differentiate ourselves from our largest competitors who do not have these capabilities."
- The deal is expected to close in Q1. and be accretive to 2016 earnings. Monster is unchanged after hours.
Tue, Feb. 16, 2:36 PM
- Susquehanna lowers estimates on Monster Beverage (MNST +1.4%) after digesting scanner data.
- The investment firm sees EPS of $0.80 vs. $0.84 prior view and $0.83 consensus. Scanner data from IRI indicates a deceleration in volume growth to 7% from 13% in Q3. The comprehensive data read includes supermarkets, mass-merchandisers, c-stores, drug stores, and liquor stores
- The price target on MNST moves to $131, although downside risk to $75 exists in a worst-case scenario envisioned by Susquehanna.
- On Seeking Alpha, Citron Research pitches the bear case, while Leo Nelissen sees upside for the beverage stock.
- Monster reports on February 25.
Fri, Jan. 29, 12:39 PM
- Monster Beverage (MNST -3.3%) is lower on the day after starting out in positive territory.
- A new short take from Citron Research may be holding some sway with investors.
- The firm notes that on a valuation (EV/TTM rev) basis that shares of MNST looks more expensive than FANG stocks and carry triple the multiple of beverage peers.
- Citroen's price target on Monster is $80.
- Coca-Cola (NYSE:KO) has a strategic partnership with Monster and hold a stake of almost 17%.
- Citron Research research note on MNST (.pdf)
Nov. 5, 2015, 4:33 PM
- Monster Beverage (NASDAQ:MNST): Q3 EPS of $0.84 beats by $0.03.
- Revenue of $756.62M (+19.0% Y/Y) beats by $19.69M.
Nov. 4, 2015, 5:35 PM
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Oct. 21, 2015, 9:32 AM
- McDonald's (NYSE:MCD) confirms it's testing selling Monster Beverage (NASDAQ:MNST) drinks in about 20 stores in Michigan, Illinois, Ohio, Georgia, and Florida.
- A spokesperson for McDonald's said the Monster products are helping to generate incremental traffic and sales for the chain.
- Yesterday, Evercore ISI projected that a broad entry into the quick-service restaurant industry by Monster in the U.S. could add as much as $1.5B to annual revenue.
- Previously: Monster Beverage pops after being spotted in Mickey D's (Oct. 20 2015)
Oct. 20, 2015, 10:13 AM
- Monster Beverage (NASDAQ:MNST) is up 6.23% to $140.97 after Evercore ISI reports the company is testing its products in some McDonald's stores.
- A deep penetration into QSR stores is seen as a billion-dollar opportunity.
- Monster Beverage has a strategic partnership with Coca-Cola (KO +0.6%) which may be helping to pave the way into new markets. Coca-Cola owns almost 17% of Monster.
Sep. 24, 2015, 7:09 AM
- Goldman Sachs upgrades Monster Beverage (NASDAQ:MNST) to a Buy rating from Neutral.
- Sales in China could add to Monster's results significantly over the next two years, says GS.
- The investment firm lifts its price target on MNST to $165 off the China potential.
- MNST +1.22% premarket to $136.00 on light volume.
Sep. 18, 2015, 12:35 PM
- Monster Beverage (MNST -0.1%) took in 11.2% more in sales year-over-year during a four-week period ending September 5, according to Nielsen data analyzed by Wells Fargo. The growth compares to overall energy drink sales growth of 11.1% for the same period.
- The revenue spike was based off of unit growth of 12.6%, offset by slightly lower prices.
Monster Beverage Corp. is a holding company which conducts its businesses through its subsidiaries. It involves in the development, marketing, sale and distribution of alternative beverages which refers to combined non-carbonated ready-to-drink iced teas, lemonades, juice cocktails, single-serve... More
Sector: Consumer Goods
Industry: Beverages - Soft Drinks
Country: United States
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