Have you assessed how the international operations of Monster Beverage (MNST) performed in the quarter ended September 2024? For this energy drink maker, possessing an expansive global footprint, parsing the trends of international revenues could be critical to gauge its financial resilience and growth prospects.
In the modern, closely-knit global economic landscape, the capacity of a business to access foreign markets is often a key determinant of its financial well-being and growth path. Investors now place great importance on grasping the extent of a company's dependence on international markets, as it sheds light on the firm's earnings stability, its skill in leveraging various economic cycles and its broad growth potential.
Being present in international markets serves as a counterbalance to domestic economic challenges while offering chances to engage with more rapidly evolving economies. However, this kind of diversification introduces challenges like currency fluctuations, geopolitical uncertainties and varying market trends.
In our recent assessment of MNST's quarterly performance, we discovered notable trends in its overseas revenue sections, which are typically modeled and scrutinized by Wall Street analysts.
The company's total revenue for the quarter amounted to $1.88 billion, marking an increase of 1.3% from the year-ago quarter. We will next turn our attention to dissecting MNST's international revenue to get a clearer picture of how significant its operations are outside its main base.
A Dive into MNST's International Revenue Trends
Of the total revenue, $132.05 million came from Asia Pacific during the last fiscal quarter, accounting for 7.02%. This represented a surprise of -3.9% as analysts had expected the region to contribute $137.4 million to the total revenue. In comparison, the region contributed $145.09 million, or 7.63%, and $127.27 million, or 6.86%, to total revenue in the previous and year-ago quarters, respectively.
Latin America and Caribbean accounted for 8.46% of the company's total revenue during the quarter, translating to $159.18 million. Revenues from this region represented a surprise of -5.2%, with Wall Street analysts collectively expecting $167.9 million. When compared to the preceding quarter and the same quarter in the previous year, Latin America and Caribbean contributed $163.38 million (8.60%) and $167.91 million (9.05%) to the total revenue, respectively.
During the quarter, EMEA contributed $417.59 million in revenue, making up 22.20% of the total revenue. When compared to the consensus estimate of $419.3 million, this meant a surprise of -0.41%. Looking back, EMEA contributed $393.92 million, or 20.73%, in the previous quarter, and $391.88 million, or 21.11%, in the same quarter of the previous year.
Anticipated Revenues in Overseas Markets
The current fiscal quarter's total revenue for Monster Beverage, as projected by Wall Street analysts, is expected to reach $1.81 billion, reflecting an increase of 4.6% from the same quarter last year. The breakdown of this revenue by foreign region is as follows: Asia Pacific is anticipated to contribute 7.1% or $127.5 million, Latin America and Caribbean 8.9% or $161.2 million and EMEA 18.5% or $333.9 million.For the entire year, the company's total revenue is forecasted to be $7.52 billion, which is an improvement of 5.3% from the previous year. The revenue contributions from different regions are expected as follows: Asia Pacific will contribute 7.2% ($541.2 million), Latin America and Caribbean 8.8% ($658.8 million) and EMEA 20.5% ($1.54 billion) to the total revenue.
The Bottom Line
The dependency of Monster Beverage on global markets for its revenues presents a mix of potential gains and hazards. Thus, monitoring the trends in its overseas revenues can be a key indicator for predicting the firm's future performance.In an era of growing international interdependencies and escalating geopolitical disputes, Wall Street analysts are vigilant in tracking these trends for businesses with a global reach, in order to refine their predictions of earnings. It should be noted, however, that a multitude of other elements, such as a company's domestic position, also play a significant role in shaping the earnings forecasts.
We at Zacks strongly focus on the dynamic earnings forecast of companies, given that empirical studies have demonstrated its potent impact on the immediate price movement of stocks. Invariably, there's a positive relationship -- upward earnings predictions often result in an increase in stock prices.
The Zacks Rank, our proprietary stock rating mechanism, demonstrates a notable performance history confirmed through external audits. It effectively utilizes the power of earnings estimate revisions to act as a predictor of a stock's price performance in the near term.
Currently, Monster Beverage holds a Zacks Rank #3 (Hold), signifying its potential to match the overall market's performance in the forthcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
A Review of Monster Beverage's Recent Stock Market Performance
Over the past month, the stock has gained 5.5% versus the Zacks S&P 500 composite's 4.4% increase. The Zacks Consumer Staples sector, of which Monster Beverage is a part, has declined 1.4% over the same period. The company's shares have increased 15.8% over the past three months compared to the S&P 500's 13.1% increase. Over the same period, the sector has declined 1.1%.Free Report: 5 Clean Energy Stocks with Massive Upside
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Monster Beverage Corporation (MNST) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
