Monster Beverage Corporation (NASDAQ: MNST)
Shares of Monster Beverage reported earnings on Thursday November 5, 2015 after the market closed, and wow, did they deliver. Shares of the company that sell mainly beverage products to health food distributors, convenience stores, wholesalers, mom and pop shops, as well as 7-eleven and many others, reported earnings that blew away analyst expectations and demonstrates just what a monster stock it can be when they deliver big news.
In the after hours trading session, MNST traded 163,000 shares, trading as high as $147 and as low as 131.95. Shares settled in at $143 at the close of post market tradng. This represents over a 10% increase in the after hours session after closing the regular trading session down -$0.58 at $132.24.
A Trade For Earnings
Due to the technical chart setting up with the flagging price pattern action, I felt if MNST could deliver at least decent earnings, shares could break through that upper resistance line and serve as a new break out for the stock. After the earnings had been released, we now can see shares will be trading outside of this triangular shape pattern and will likely open in the green shaded circle area.
My trade was the purchase of a Bull Call Spread. Nov6 $137/139 call spread, expiring Friday, 11/6/15, to capture a significant short-term move higher if earnings were stellar. I will delve more into this option strategy in coming articles so my readers can take part.
The energy drink maker reported net income of $174.6 million, or 84 cents a share, compared with $121.6 million, or 70 cents, in the year-earlier period. Analysts polled by FactSet had been anticipating earnings per share of 81 cents. Revenue for the three-month period increased 16% to $756.6 million compared with $636 million, beating the FactSet consensus view of $733 million. The company attributed the gains to progress with its international Coca-Cola bottler partnerships, including a partnership with a bottler in Germany inked in July that has helped spur growth in Europe. Despite the gains, the company said some growth was impeded by “uncertainties,” including non-Coca-Cola distributor transitions, in other portions of its international market, and negative foreign exchange rates. Shares of Monster Beverage traded around $146 in after-hours trade on Thursday after closing the regular session at $132.24.- Marketwatch
About Monster Beverage Corporation
Monster Beverage Corporation, through its subsidiaries, develops, markets, sells, and distributes alternative beverage category beverages in the United States and internationally. The companys Finished Products segment offers finished energy drinks to full service beverage distributors, retail grocery and specialty chains, wholesalers, club stores, drug chains, mass merchandisers, convenience chains, health food distributors, food service customers, and the military. Its Concentrate segment provides concentrates and/or beverage bases to authorized bottling and canning operations. The company offers its products primarily under the Monster Energy, Monster Rehab, Monster Energy Extra Strength Nitrous Technology, Java Monster, Muscle Monster, Punch Monster, Juice Monster, M3, Übermonster, BU, Gladiator, Nalu, NOS, Full Throttle, Burn, Mother, Play, Power Play, Relentless, Samurai, BPM, and Ultra brands. The company was formerly known as Hansen Natural Corporation and changed its name to Monster Beverage Corporation in January 2012. Monster Beverage Corporation was founded in 1985 and is headquartered in Corona, California.-Yahoo Finance