Monster Beverage (MNST) Q1 Earnings In Line, Sales Miss

Shares of Monster Beverage Corporation MNSTdeclined more than 8% on May 8, after the company reported disappointing first-quarter 2018 results. Although the bottom line met the Zacks Consensus Estimate, the top line missed the same.

Earnings & Revenue Discussion

Monster Beverage’s adjusted earnings came in at 39 cents per share, meeting the Zacks Consensus Estimate.

However, the company reported earnings of 38 cents, which include distributor termination expenses that reduced the reported earnings by approximately 1 cent per share, after tax. Then again, reported earnings increased 22.6% year over year.

Net sales of $850.9 million missed the consensus mark of $859.8 million. The figure however improved 14.7% from the prior-year quarter. Foreign currency translation positively impacted net sales by $17.7 million, partially offset by $9.9 million impact due to the adoption of Accounting Standards Codification (“ASC”) 606.

Net sales to customers outside the United States increased 26.8% year over year to $242.1 million.