Here's Why Monster Beverage Shares Are Falling

Monster Beverage Corp MNST shares are trading lower by 3.69% to $98.00 Tuesday evening after the company reported worse-than-expected fourth-quarter results and declared a 2-for-1 stock split.

What Happened: Monster Beverage reported quarterly earnings of 57 cents per share, which missed the analyst consensus estimate of 63 cents. The company also reported quarterly sales of $1.51 billion which missed the analyst consensus estimate of $1.60 billion by 5.6%. This sales figure is however a 6% percent increase over sales of $1.43 billion in the same period last year.

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Monster Beverage says operating expenses for the 2022 fourth quarter were $390.0 million, compared with $354.7 million in the 2021 fourth quarter.

The company says this increase in operating expenses was primarily due to increased warehousing and other logistical expenses, increased payroll expenses and increased general and administrative expenses.

As of December 31, Monster Beverage had $1.31 billion in cash and cash equivalents, $1.36 billion in short-term investments and $61.4 million in long-term investments.

What Else: Vice Chairman and Co-CEO Hilton H. Schlosberg said: "We are pleased to report another quarter of continued revenue growth. The energy drink category continues to expand globally. The results from our overseas operations were again overshadowed by the strength of the United States dollar in the quarter."

"Gross profit margin percentages increased on a sequential quarterly basis as a result of our pricing actions, as well as certain of our supply chain challenges moderating," Schlosberg stated.

According to data from Benzinga Pro, MNST has a 52-week high of $105.45 and a 52-week low of $71.78.

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