Monster Spikes on Q2 Earnings
Monster Beverage Corp (NASDAQ:MNST) reported stronger-than-expected earnings for its second quarter on Tuesday.
The company, based in Corona, Calif. reported net sales for the 2020 second quarter were $1.09 billion compared with $1.10 billion in the same period last year. Gross sales for the 2020 second quarter were $1.27 billion as compared to $1.29 billion in the same period last year.
Gross profit, as a percentage of net sales, for the 2020 second quarter was 60.3%, compared with 59.9% in the 2019 second quarter.
Operating expenses for the 2020 second quarter were $252.2 million, compared with $282.3 million in the 2019 second quarter. The decrease in operating expenses was primarily due to decreased expenditures of $19.8 million for sponsorship and endorsements and decreased expenditures of $10.1 million for travel and entertainment, each largely as a consequence of the COVID-19 pandemic.
Net income for the 2020 second quarter increased 6.5% to $311.4 million, from $292.5 million in the 2019 second quarter. Net income per diluted share for the 2020 second quarter increased 9.9% to $0.59, from $0.53 in the second quarter of 2019.
Said CEO Rodney C. Sacks "We remain pleased with our performance in the second quarter. EMEA sales were more impacted in the quarter, and especially so in our Strategic Brands, but overall, we are experiencing sequential improvements each month. Our supply chain remains intact, and we are continuing to service our customers."
Monster leaped $4.06, or 5.2%, to $82.07.