Earnings Update: Monster Beverage Corporation (NASDAQ:MNST) Just Reported Its First-Quarter Results And Analysts Are Updating Their Forecasts

As you might know, Monster Beverage Corporation (NASDAQ:MNST) recently reported its first-quarter numbers. It looks like the results were a bit of a negative overall. While revenues of US$1.9b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 3.6% to hit US$0.42 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for Monster Beverage

Taking into account the latest results, the current consensus from Monster Beverage's 22 analysts is for revenues of US$7.88b in 2024. This would reflect an okay 7.4% increase on its revenue over the past 12 months. Per-share earnings are expected to swell 12% to US$1.81. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$7.94b and earnings per share (EPS) of US$1.80 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$62.04. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Monster Beverage at US$69.00 per share, while the most bearish prices it at US$46.00. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Monster Beverage's past performance and to peers in the same industry. We would highlight that Monster Beverage's revenue growth is expected to slow, with the forecast 9.9% annualised growth rate until the end of 2024 being well below the historical 13% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 5.1% annually. So it's pretty clear that, while Monster Beverage's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Monster Beverage going out to 2026, and you can see them free on our platform here.

You still need to take note of risks, for example - Monster Beverage has 1 warning sign we think you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.