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Research Alert: Mnst: Robust Non-u.s. Sales Growth And Currency Drive Beat

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-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

Monster Energy (MNST) posted Q1 adjusted EPS of $0.58 vs. $0.47 (+24%), ahead of the $0.53 consensus. MNST's net sales rose 27% to $2.35B ($190M above consensus) and gross margin contracted 150 bps to 55.0% (40 bps below consensus). MNST said net changes in foreign currency exchange rates had a favorable impact on net sales of $89M. The decline in gross margin was primarily the result of geographical sales mix, increased aluminum can costs, and increased freight-in costs, partially offset by pricing actions. International sales were especially strong, jumping 45% to $1.06B, representing 45% of total sales (vs. 40% a year ago), the highest ever percentage for a single quarter. The company bought back 1.4M shares for $100M in Q1 (an average price of $73.86/share). MNST shares are currently trading about 5% higher after-hours. The quarter marked MNST's fourth straight bottom-line beat. In our view, the big story was the strength of MNST's international sales, boosted even further by favorable currency moves.

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