Submitted by Mark Hanna
Courtesy of MarketMontage. View original post here.
Monster Beverage is getting hit rather hard in after hours (5-7%) on what looks to be a pretty darn solid quarter. Unfortunately the market is hyper sensitive to a penny here or there and by missing by 1 cent (35c v 36c) the stock is taking some punishment. I am assuming analysts are using net sales rather than gross as that came in at $410M vs expectations of $411M. Full report here. The stock is indicating $52ish after hours.
- Gross sales for the 2011 fourth quarter increased 28.4 percent to $467.3 million from $364.1 million in the same period last year. Net sales for the three-months ended December 31, 2011 increased 28.7 percent to $410.0 million from $318.7 million a year ago.
- Gross profit, as a percentage of net sales, for the 2011 fourth quarter was 52.3 percent, compared with 51.6 percent for the comparable 2010 quarter. Operating expenses for the 2011 fourth quarter increased to $110.8 million from $84.6 million in the same quarter last year.
- Distribution costs as a percentage of net sales were 4.4 percent for the 2011 fourth quarter, compared with 4.2 percent in the same quarter last year. Selling expenses as a percentage of net sales for the 2011 fourth quarter were 12.5 percent, compared with 12.2 percent in the same quarter a year ago.
- Net income for the 2011 fourth quarter increased 31.4 percent to $64.5 million from $49.1 million in the same quarter last year. Net income per diluted share increased 32.6 percent to $0.35 from $0.26 per diluted share in the 2010 comparable quarter.
- Gross sales to customers outside the United States rose to $88.9 million in the 2011 fourth quarter, compared with $66.4 million in the corresponding quarter in 2010.
- Rodney C. Sacks, chairman and chief executive officer, noted that the energy drink category is continuing to demonstrate solid growth. Once again, the Monster Energy(R) brand grew in excess of the category and increased market share. “Our new Monster Rehab(TM) tea + lemonade rehydration energy drink with electrolytes, which was launched in the first quarter of 2011, continues to gain traction and has become one of our top selling Monster Energy(R) products. During the fourth quarter, we launched three new product extensions in the Monster Rehab(TM) line,” Sacks said. “We are continuing to expand into new international markets, with additional launches in 2012. We commenced sales of the Monster Energy(R) brand in Poland earlier this month,” Sacks added.
Disclosure Notice
Any securities mentioned on this page are not held by the author in his personal portfolio. Securities mentioned may or may not be held by the author in the mutual fund he manages, the Paladin Long Short Fund (PALFX). For a list of the aforementioned fund’s holdings at the end of the prior quarter, visit the Paladin Funds website at http://www.paladinfunds.com/holdings/blog
