Monster Beverage’s (MNST) Earnings Jump Raises Fresh Questions About Its 2024 Buyback Pause

• Monster Beverage Corporation recently reported third quarter 2025 results, showing sales of US$2.20 billion and net income of US$524.46 million, both higher than the prior year, while confirming no shares were repurchased under its 2024 buyback program during the quarter.
• The company's strong growth in sales and net income highlights robust demand and operational execution despite a pause in buyback activity.
• We'll explore how Monster Beverage's significant year-over-year earnings growth informs its investment narrative and future prospects.

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Monster Beverage Investment Narrative Recap

To be a Monster Beverage shareholder, you need to believe in the continued global momentum for functional and energy drinks, supported by consistent innovation and international expansion. While the company’s robust third quarter results affirm strong top-line growth, the recent news showing a pause in share repurchases does not materially affect the most important near-term catalyst, demand for new product launches and margin management. The biggest current risk remains potential margin pressure from rising costs and shifts in international sales mix, neither of which was directly altered by the buyback update.

The most relevant recent announcement is Monster's third quarter earnings release, which revealed substantial year-over-year net income and revenue growth. These figures reinforce the strength of Monster's underlying demand and international activities, contextualizing ongoing catalysts like its low and zero-sugar offerings and global distribution partnerships as engines of further revenue diversification and scale. However, it’s important to remember that despite this momentum, the company continues to face underlying cost risks that could impact future performance.

In contrast, investors should also be aware that gross margin improvements may face renewed pressure if commodity costs or tariffs rise faster than Monster’s ability to pass on higher prices to consumers...

Read the full narrative on Monster Beverage (it's free!)

Monster Beverage's narrative projects $9.8 billion revenue and $2.5 billion earnings by 2028. This requires 8.5% yearly revenue growth and a $0.9 billion earnings increase from $1.6 billion.

Uncover how Monster Beverage's forecasts yield a $68.64 fair value, a 4% downside to its current price.

Exploring Other Perspectives

You’ll find four distinct estimates from the Simply Wall St Community, with fair values for Monster Beverage between US$54.52 and US$68.64. Despite this range of views, strong quarterly profits and international expansion underscore the importance of monitoring margin trends in a competitive global market. Explore these alternative perspectives to see how your outlook might differ.

Explore 4 other fair value estimates on Monster Beverage - why the stock might be worth as much as $68.64!

Build Your Own Monster Beverage Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Monster Beverage research is our analysis highlighting 2 key rewards that could impact your investment decision.
• Our free Monster Beverage research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Monster Beverage's overall financial health at a glance.

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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.

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