×
Newsmax TV & Webwww.newsmax.comFREE - In Google Play
VIEW
×
Newsmax TV & Webwww.newsmax.comFREE - On the App Store
VIEW
Tags: Monster | Beverage | Shares | Profit

Monster Beverage Shares Tumble as Profit Falls 17%

Wednesday, 08 May 2013 05:42 PM EDT

Monster Beverage Corp. reported a 17 percent fall in quarterly profit due to higher operating expenses and costs related to distributor terminations and foreign currency transactions. Its shares tumbled in late trading Wednesday after the news.

The energy drink maker, formerly known as Hansen Natural, earned $63.5 million, or 37 cents per share, in the first-quarter, down from $76.1 million, or 41 cents per share, a year earlier.

Sales rose 7 percent to $484.2 million.

Operating expenses jumped 26 percent to $144.7 million.

Analysts on average expected a profit of 46 cents per share on revenue of $501.74 million, according to Thomson Reuters I/B/E/S.

Energy drinks in general have come under review due to health concerns about high concentrations of caffeine and other ingredients. U.S. health regulators are investigating reports of five deaths that may be associated with the Monster energy drink.

Monster said it incurred costs of $8.3 million related to the termination of certain distributors, and foreign currency transaction losses of $4.7 million primarily related to its operations in Japan and South Africa.

Gross profit margin fell to 52.1 percent in the quarter from 53.2 percent a year earlier.

Shortly before 6 p.m. Eastern time, Monster Beverages shares were down $9.95, or 17 percent, at $47.02 each. The stock was little changed in regular trading.

© 2024 Thomson/Reuters. All rights reserved.


InvestingAnalysis
Monster Beverage Corp. reported a 17 percent fall in quarterly profit due to higher operating expenses and costs related to distributor terminations and foreign currency transactions. Its shares tumbled.
Monster,Beverage,Shares,Profit
217
2013-42-08
Wednesday, 08 May 2013 05:42 PM
Newsmax Media, Inc.

Sign up for Newsmax’s Daily Newsletter

Receive breaking news and original analysis - sent right to your inbox.

(Optional for Local News)
Privacy: We never share your email address.
Join the Newsmax Community
Read and Post Comments
Please review Community Guidelines before posting a comment.
 
Get Newsmax Text Alerts
TOP

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved
NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved