Monster Beverage Stock Rises Premarket On Q3 Beat After Celsius’ Rout

• Monster Beverage reported Q3 revenue and profit that beat analysts’ expectations. 
• CEO Hilton Schlosberg said the energy drinks category is strong worldwide.
• Stocktwits sentiment for MNST shifts to ‘bullish.’

Monster Beverage Corp.’s shares jumped 4% in early premarket trading on Friday, after the company’s upbeat quarterly results.

Consumers are increasingly opting for healthier options, such as energy- and sugar-free drinks, over regular sodas. The company said its sugar-free Monster Energy Ultra line, along with recent flavor introductions, drove sales growth for the quarter.

"Overall, the global energy drink category remains healthy with robust growth," CEO Hilton Schlosberg said on the analyst call, adding that some consumers are choosing energy drinks over coffee.

Q3 Performance 

In the September quarter, Monster’s net sales rose 16.8% to $2.20 billion, beating analysts’ expectations of $2.11 billion, partially aided by price increases over the year. Adjusted EPS of $0.56 also came in higher than the $0.48 target.

Sales in the Monster’s drink segment increased 18%, to $2.03 billion, while sales in its strategic brands segment, which primarily includes drink brands acquired from Coca-Cola, rose 16% to $130.5 million. 

Monster's alcohol revenue fell 17% to $33 million.

What Is Retail Thinking?

On Stocktwits, the retail sentiment for MNST shifted to ‘bullish’ as of early Friday, from ‘neutral’ the previous day. Several users drew parallels between Monsters’ report and that from Celsius Holdings, which reported earlier on Thursday.

“$CELH insane how Celsius went down 25% yet $MNST goes up 5% on dropping sales,” said one user.

As of the last close, MNST stock has gained 26.2%.

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