Overview

• U.S. energy drink maker's Q1 net sales rose 26.9%, beating analyst expectations

• Adjusted EPS for Q1 rose 27.6% yr/yr

• Company repurchased $100 mln of shares during Q1

Outlook

• Company did not provide specific financial guidance for the current quarter or full year

Result Drivers

• CORE ENERGY DRINKS GROWTH - Net sales in the Monster Energy Drinks segment rose 27.6% yr/yr, driven by increased consumer demand

• INTERNATIONAL SALES - Net sales to customers outside the U.S. increased 44.9% yr/yr, representing 45% of total net sales

• GROSS MARGIN PRESSURE - Gross profit margin fell to 55.0% from 56.5% mainly due to geographical sales mix, higher aluminum can and freight-in costs, partially offset by pricing actions

Company press release: ID:nGNX2w8W7T

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Sales	Beat	$2.35 bln	$2.16 bln (16 Analysts)
Q1 EPS		$0.58
Q1 Net Income		$569.49 mln
Q1 Operating Expenses		$563.39 mln
Q1 Operating income		$729.96 mln

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 15 "strong buy" or "buy", 11 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the non-alcoholic beverages peer group is "hold."

• Wall Street's median 12-month price target for Monster Beverage Corp is $87.00, about 12.7% above its May 6 closing price of $77.20

• The stock recently traded at 33 times the next 12-month earnings vs. a P/E of 36 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.