Competition Comes for Monster Beverage
For nearly two decades, Monster Beverage (NASDAQ: MNST) has been a pioneer in the energy drink category. Stemming from its origins as a maker of natural soda products, Monster saw early on that consumers' tastes could shift away from traditional favorites toward new categories. Between it and arch-rival Red Bull, Monster was able not just to create a new category but to take an impressive share of the new market for years. Yet Monster's success has finally encouraged others to try to break into the energy drink market, and that could pose a new threat to Monster's long-term domination of the industry.
Coming into Wednesday's second-quarter financial report, Monster Beverage investors wanted to see continued strong gains in revenue and earnings. Monster's numbers weren't quite as good as most had hoped, and that has some questioning whether competition is actually having more of an impact on the energy drink giant's results than previously thought.
Monster Beverage's second-quarter results were solid but relatively unimpressive. Revenue rose 8.7% to $1.10 billion, lagging behind the 11% growth rate that most of those following the stock had wanted to see. Net income of $292.5 million was up 8.3% from year-ago levels, and that produced earnings of $0.53 per share. That figure fell short of the consensus earnings forecast among investors of $0.56 per share.
Quelle Fool.com
