Monster Beverage Corporation (NASDAQ:MNST) shares jumped over 5% in after-hours trading Wednesday after the energy drink maker reported notably better-than-expected gross profit margins and strong revenue growth for the fiscal fourth quarter.
Earnings per share (EPS) were reported at $0.38, in line with consensus expectations. Revenue saw a record year-over-year rise of 14.4% to $1.73 billion, though still below the anticipated $1.76 billion.
The gross profit margin for the quarter stood at 54.5%, excluding the Bang inventory step-up, surpassing the market's forecast by approximately 90 basis points.
On the expense front, Monster Beverage saw a significant increase in operating expenses, which rose to $504.4 million in the fourth quarter of 2023 from $390.0 million in the same period the previous year.
“Resilient top-line growth and better-than-expected gross margins make us feel positive about the underlying health of the business,” analysts at Bernstein said in a note.
“However, there is also an unexpected step-up in operating costs that merits some attention,” they added.
Still, the evident strength in revenue growth and robust gross margins “paints a positive picture of the health of the business into 2024, in our view.”