Monster Beverage falls as foreign exchange rates hurt earnings
jetcityimage/iStock Editorial via Getty Images
Monster Beverage (NASDAQ:MNST) fell 3.4% on Friday morning after reporting second-quarter results.
GAAP EPS of $0.39 met expectations while revenue of $1.85B missed the average analyst estimate by $20M.
Net changes in foreign currency exchange rates had an unfavorable impact on net sales for the Monster Energy Drinks segment of approximately $36.3M, the company said in a statement.
âWe are seeing sustained growth in the energy drink market in the United States, as well as internationally. We are pleased to report another quarter of continued revenue growth, with record sales for our second fiscal quarter,â Co-Chief Executive Officer Hilton Schlosberg said in a statement.
âThe quarter was again impacted by unfavorable foreign currency exchange rates.â
The beverage company has increased prices internationally with additional price increases planned in a number of other markets during the remainder of the year.
For the second quarter, net sales for the Monster Energy Drinks segment increased 9.7% to $1.69B. Net sales for the Strategic Brands segment, which primarily includes the various energy drink brands acquired from The Coca-Cola Company, increased 26% to $99.7M.
Last month, Seeking Alpha analyst Alex Galanis noted that the beverage company has outperformed expectations but is too expensive.
âThe company's current stock valuation leads to a hold rating, despite its ample growth potential and positive industry trends. A P/E around 20x-25x would be considered reasonable for a buy,â Galanis wrote.
MNST is generally favored by Wall Street analysts, who have 11 Strong Buy ratings on the company, four Buys, seven Holds and one Sell.
Shares are up 14% so far in 2023.
More on Monster:

Monster Beverage Corporation (MNST) Q2 2023 Earnings Call Transcript
Monster Beverage: Solid Attributes But A Pricey Valuation
 Monster Beverage GAAP EPS of $0.39 in-line, revenue of $1.85B misses by $20M
 Energizing stuff: Monster Beverage takes control of Bang Energy