MNST

The stock has not been priced this richly against its own sales at any point in a decade, and part of the earnings growth that price pays for comes from an exchange-rate swing rather than from the operation. Coca-Cola (KO) closed at $88.82 on Aug 18, 2026, effectively at its 52-week high after a 30.6% total return over the past year. Nothing in the operation is breaking, which is what makes the risk here hard to see. The price now pays for peak profitability, and the most recent step up in earnings growth came partly from outside the operation. The company's $50.1 billion of revenue over the trailing twelve months is priced at 7.6 times sales. That multiple has run between 4.3 and 7.1 over the past decade, so the stock is now above the top of its own ten-year range. The stretch is measured against its own history, not against any peer. A price set there is not asking the business to accelerate; it is asking it not to stumble. Net margin over the trailing twelve months is 28.6%, the highest in at least five years and well above its 24.9% three-year average. Management attributes the comparable operating margin expansion in Q2 2026 to underlying expansion and currency tailwinds together. The company's full-year 2026 guide carries an approximate 3-point currency tailwind inside comparable earnings per share growth of 9% to 10%. Foreign exchange ran the other way for years before it turned. Earnings growth built in the operation and earnings growth handed over by an exchange rate are not the same asset, a distinction the Trefis High Quality Portfolio makes when it looks for strong margins alongside sustainable revenue growth in its holdings. Worldwide unit case volume grew 5% in Q2 2026, and the company names what made the quarter run hot: an easier prior-year comparison, favorable weather in certain markets, and a FIFA World Cup activation that helped carry Trademark Coca-Cola to its strongest volume growth in 17 years, excluding the pandemic recovery. On a two-year average, that worldwide volume line runs 2%. Adding new drinkers costs something: comparable operating income in Asia Pacific declined in Q2 2026 even as volume grew across all of its operating units, and management puts that decline down to widening the consumer base across income levels, an effort that includes affordability initiatives and cold drink equipment. Volume built for the long term is being paid for out of segment profit. Management guides 2026 organic revenue growth to about 5%, below the 6% organic growth reported for Q2 2026, and says the second half of 2026 cycles a higher comparison, with six fewer days in the fourth quarter. The deceleration is scheduled, not the risk. What is unsettled is whether it arrives with mix improving or with more investment behind it. None of this describes a company in trouble; it describes a stock the market has barely marked down at any point in the past year, when the deepest peak-to-trough drop reached just 7.9%. How wide a range the options market is pricing over the next twelve months is the cheapest read on whether anyone else is worried yet. The risks here are not existential; they sit in one multiple, one margin cycle and one investment cycle, and a holder owns all three. Spreading that defensive intent across the Trefis High Quality Portfolio is a different exposure from paying the top of a decade-long range on sales for one franchise. That portfolio has a track record of outpacing the three major indices - the S&P 500, S&P Mid-cap, and Russell 2000.

Monster’s second-quarter performance was marked by robust top-line growth, as revenue exceeded Wall Street’s expectations, but the market responded negatively, reflecting concerns about profitability and expense trends. Management attributed the quarter’s strong sales to broad-based international growth, new product launches, and increased household penetration—especially through zero sugar and innovation-driven offerings. CEO Hilton Schlosberg highlighted, “Sales increased by double digits compared to the prior year in all geographic regions, and we gained share in many of our global markets.” However, increased marketing and distribution expenses contributed to margin pressure, with operating margins declining from the prior year. Is now the time to buy MNST? Find out in our full research report (it’s free). Revenue: $2.54 billion vs analyst estimates of $2.44 billion (20.2% year-on-year growth, 4.1% beat) Adjusted EPS: $0.30 vs analyst estimates of $0.29 (in line) Adjusted Operating Income: $748.1 million vs analyst estimates of $727.5 million (29.5% margin, 2.8% beat) Operating Margin: 29.2%, down from 30.9% in the same quarter last year Market Capitalization: $90.08 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Kaumil Gajrawala (Jefferies) asked for more detail on pricing strategy by region. CEO Hilton Schlosberg and regional CEOs explained a consistent, opportunistic approach to pricing, tailored to each market’s competitive dynamics and inflationary backdrop. Kevin Grundy (BNP Paribas) inquired about the sustainability of international growth and operational changes. CEO Schlosberg and EMEA CEO Guy Carling emphasized strong coordination with Coca-Cola bottlers, innovation, and leading market positions—especially in zero sugar segments—as drivers. Filippo Falorni (Citi) probed the innovation pipeline and success of limited time offerings. Schlosberg described a shift to staggered launches, noting strong early results for special editions and ongoing commitment to new products targeting emerging consumer segments. Dara Mohsenian (Morgan Stanley) asked about underpenetrated channels and incremental opportunities. Schlosberg and Americas CEO Rob Gehring cited food service, vending, and female-oriented products as areas for future expansion, with innovation helping to recruit new consumers at twice the category rate. Bonnie Herzog (Goldman Sachs) questioned higher operating expenses and their sustainability. Schlosberg attributed the increase to elevated freight, fuel, and marketing spend, cautioning that these costs could persist if inflationary pressures remain unresolved. In upcoming quarters, the StockStory team will monitor (1) the effectiveness of selective price increases in offsetting input cost inflation, (2) the pace at which new product innovations gain traction among younger and female consumers, and (3) expansion into food service and on-premise channels, including partnerships like Marriott. Success in managing distribution costs and sustaining margin levels will also be crucial signposts. Monster currently trades at $46.22, down from $47.08 just before the earnings. Is there an opportunity in the stock? Find out in our full research report (it’s free for active Edge members). ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time. Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.

Image source: The Motley Fool. Thursday, Aug. 6, 2026 at 5:00 p.m. ET Vice Chairman and Chief Executive Officer - Hilton Schlosberg Chief Financial Officer - Tom Kelly CEO of the Americas - Rob Gehring CEO of EMEA and OSP - Guy Carling Chief Operating Officer - Mike Rodriguez Chief Strategy Officer - Emelie Tirre SVP of Investor Relations and Corporate Development - Mark Astrachan Operator: Good day, and welcome to the Monster Beverage Corporation second quarter 2026 financial results conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on the touchtone phone. To withdraw your question, please press star then two. In the interest of time, please limit yourself to one question. Please note that this event is being recorded. I would now like to turn the conference over to Hilton Schlosberg, CEO. Please go ahead. Hilton Schlosberg: Good afternoon, ladies and gentlemen. Thank you for attending this call. I'm Hilton Schlosberg, Vice Chairman and Chief Executive Officer. Also on the call are Tom Kelly, our Chief Financial Officer; Rob Gehring, our CEO of the Americas; Guy Carling, our CEO of EMEA and OSP; Mike Rodriguez, our COO; and Emelie Tirre, our Chief Strategy Officer. Mark Astrachan, our SVP of Investor Relations and Corporate Development, will now read a caution statement. Mark Astrachan: Before we begin, I would like to remind listeners that certain statements made during this call may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 as amended, and Section 21E of the Securities Exchange Act of 1934 as amended, are based on currently available information regarding the expectations of management with respect to revenues, profitability, future business, future events, financial performance, and trends. Management cautions that these statements are based on our current knowledge and expectations and are subject to certain risks and uncertainties, many of which are outside the control of the company that may cause actual results to differ materially from forward-looking statements made during this call. Please refer to our filings with the Securities and Exchange Commission, including our most recent annual report on Form 10-K filed February 27th, 2026, including the sections contained therein entitled Risk Factors and Forward-Looking Statements for discussion on specific risks and uncertainties that may affect our performance. The company assumes no obligation to update any forward-looking statements, whether as a result of new information, future events, or otherwise. I would also like to note that an explanation of the non-GAAP measures, which we refer to as adjusted, where applicable, mentioned during the course of this call is provided in the notes in the condensed consolidated statements of income and other information attached to the earnings release dated August 6th, 2026. A copy of this information is also available on our website, www.monsterbevcorp.com, in the Financial Information section. Please note regional scanner data is included in an exhibit filed with our 8-K. We point out that certain market statistics that cover single months or four-week periods may often be materially influenced, positively or negatively, by promotions or other trading factors during those periods. I would now like to hand the call over to Hilton Schlosberg. Hilton Schlosberg: Good afternoon, thank you for joining us. We're pleased to report another quarter of strong financial results and cash generation, with net sales crossing the $2.5 billion threshold for the first time in the company's history in a single quarter. Sales increased by double digits compared to the prior year in all geographic regions, and we gained share in many of our global markets, including the Monster brand in the U.S. in the second quarter, reflecting the strength of our core offerings as well as our product innovations. Now turning to the energy drink category specifically. The global energy drink category remains healthy with continued robust growth. We believe household penetration continues to increase in the energy drink category, driven by functionality and lifestyle positioning, diverse offerings that appeal to an increasingly broad and loyal consumer base, and affordable value offerings in addition to premium offerings. We believe our portfolio of existing, recently launched, and planned energy drink offerings is well-positioned to participate in the growing global energy drink category, appealing to a broad range of consumers across geographies, price points, need states, and day parts. Our business continues to be supported by strong marketing programs, impactful retail engagement, and our solid partnership with The Coca-Cola Company and its global bottling partners. In the U.S., according to Nielsen, for the recently reported 13-week period through July 25th, 2026, sales in dollars in the energy drink category, including energy shots for all outlets combined, namely convenience, grocery, drug, mass merchandisers, increased by 7.1% versus the same period a year ago. In EMEA, the energy drink category, according to Nielsen, for our tracked markets for the recently reported 13-week period, which differ from country to country, grew 10.4% versus the same period last year, FX neutral. In APAC, the energy drink category, according to Nielsen, Circana, and Intage, for our tracked channels for the recently reported 13-week period, which differ from country to country, grew 11.7% versus the same period last year, FX neutral. In LATAM, the energy drink category, according to Nielsen, for our tracked markets for the three months ended June 30th, 2026, grew 23.8% versus the same period last year, FX neutral. Turning to marketing, Monster maintained strong momentum in the second quarter, with efforts focused on growing our core business, attracting new consumers, and increasing household penetration. Monster Energy participated in America 250 celebrations via our sponsorship of UFC and the introduction of limited time offering products across the Ultra, Juice Monster, Reign, and Bang brand families celebrating this milestone. Monster athletes were also successful in competition in the U.S. throughout the quarter, with notable victories in Supercross 250, NHRA, Motocross, NASCAR, and X Games Sacramento. Monster Energy-based riders in MotoGP won 4 races in the 2Q, including the Monster Energy Grand Prix of Catalunya. Monster Energy's long-standing presenting partnership of the Isle of Man TT was once again dominated by Michael Dunlop, who extended his outright record number of wins to 36, with 3 more victories to his name. The 2026 TT event, including Monster Energy's participation, also played host to a Hollywood production that will be based around the world-famous race. The Monster Energy music program kicked off the summer by sponsoring Morgan Wallen's Still The Problem Tour. It also brought the tour to life at retail, allowing Monster Energy consumers to earn points redeemable for free merchandise and concert tickets, connecting the brand directly to the tour experience. Monster Energy also had significant consumer activation at the Stagecoach Country Music Festival. Increased selling expenses in the 2Q were largely driven by our marketing efforts aimed at maintaining sales momentum as we execute our marketing strategy, recruiting new energy drink consumers and expanding household penetration. Our 2026 marketing strategy includes increased marketing investments across a variety of new platforms and partnerships, including social and digital media, to support both existing product offerings and innovation to recruit new energy drink consumers, increase household penetration, and reach a broadening consumer base for the company. An example of this is the recently announced partnership with the Big 12 Conference that includes naming rights for Monster Energy for the conference's football and basketball regular seasons, and a co-branded Monster Energy and Big 12 Conference logo that will appear on jerseys, courts, and fields, with additional integration across the Big 12 Conference digital and social media channels. Turning to tariffs. During the 2Q 2026, the impact of tariffs and the increase in the price of aluminum on our operating results was modest. Despite the modest impact on our business in the 2Q, the tariff landscape continues to be complicated and dynamic. For instance, tariffs significantly impacted the Midwest premium for aluminum, which increased the cost of our aluminum cans. We also import some raw materials into the U.S., export certain raw materials for local markets, and export limited quantities of finished goods. We do not believe, based on our business model, that the current tariffs will have a material impact on the company's operating results. However, based on current aluminum pricing and the Midwest premium, we expect a continued modest sequential increase in our aluminum costs through at least the end of 2026. We will continue to recognize tariffs on aluminum through the higher Midwest premium and continue to implement hedging strategies across the business where possible. Turning to 2Q financial results, net sales were $2.54 billion for the 2Q 2026, or 20.2% higher than net sales of $2.11 billion in the 2Q 2025. Net sales, excluding the alcohol brand segment, increased 20.8% in the 2Q 2026. Net changes in foreign currency exchange rates had a favorable impact on net sales for the 2Q 2026 of $48.5 million. Net sales on a foreign currency adjusted basis increased 17.9% in the 2026 second quarter. Net sales, excluding the alcohol brand segment, on a foreign currency adjusted basis, increased 18.5% in the 2026 second quarter. Excluding the alcohol brand segment from our reported results is purely illustrative as it remains part of our ongoing operations. Net sales for the company's Monster Energy drinks segment increased 21.6% to $2.36 billion for the 2026 second quarter, from $1.94 billion for the 2025 second quarter. Net sales on a foreign currency adjusted basis for the Monster Energy drink segment increased 19.3% in the 2026 second quarter. Net sales for the company's strategic brand segment increased 10.6% to $143.7 million for the 2026 second quarter, from $129.9 million in the 2025 second quarter. Net sales on a foreign currency adjusted basis for the strategic brand segment increased 8.1% in the 2026 second quarter. Net sales for the alcohol brand segment decreased 15.2% to $32.2 million for the 2026 second quarter, from $38 million in the 2025 second quarter. Gross profit as a percentage of net sales for the 2026 second quarter was 55.9%, compared with 55.7% in the 2025 second quarter. Adjusted gross profit as a percentage of net sales, excluding the alcohol brand segment, for the 2026 second quarter was 56.3%, compared with 56.2% in the 2025 second quarter. The increase in gross profit as a percentage of net sales for the 2026 second quarter was primarily the result of pricing actions and product sales mix, partially offset by increased aluminum can costs geographical sales mix and increased freight-in costs. Distribution expenses for the 2026 second quarter were $118.8 million or 4.7% of net sales, compared with $82 million or 3.9% of net sales in the 2025 second quarter, largely reflecting higher freight and fuel costs. Selling expenses for the 2026 second quarter were $269.2 million or 10.6% of net sales compared with $196.9 million or 9.3% of net sales in the 2025 second quarter. The increase in selling expenses for the 2026 second quarter was primarily due to increased social, digital media, and other marketing expenses, including sponsorships and endorsements aimed at maintaining strong sales momentum as we execute our marketing strategy to recruit new energy drink consumers and expand household penetration. General and administrative expenses for the 2026 second quarter were $291.2 million or 11.5% of net sales compared with $265.9 million or 12.6% of net sales for the 2025 second quarter. Stock-based compensation was $35.7 million for the 2026 second quarter compared with $33.2 million in the 2025 second quarter. General and administrative expenses in the 2026 second quarter included $6.5 million of expenses related to our digital transformation initiatives. Operating expenses for the 2026 second quarter were $679.2 million compared with $544.8 million in the 2025 second quarter. Adjusted operating expenses for the 2026 second quarter were $662.7 million compared with $505.6 million in the 2025 second quarter. Operating income for the 2026 second quarter increased 17.2% to $740.4 million from $631.6 million in the 2025 comparative quarter. Adjusted operating income for the 2026 second quarter increased 13.3% to $748.1 million from $660.1 million in the 2025 second quarter. Effective tax rate for the 2026 second quarter was 23.9%, compared to 24.4% in the 2025 second quarter. Net income per diluted share for the 2026 second quarter increased 19% to $0.59 from $0.50 in the second quarter of 2025. Adjusted net income per diluted share for the 2026 second quarter increased 15.2% to $0.60 from $0.52 in the second quarter of 2025. Moving to geographic results, we are pleased with our performance in the U.S. and Canada with net sales increasing 11.5% in the 2026 second quarter compared to the 2025 second quarter. According to Nielsen, the Monster brand family also gained 70 basis points of value market share in the 2026 second quarter compared to the prior year period. Our sales performance reflected healthy category growth with solid overall contribution from our core brand families, complemented by innovation and disciplined execution across our organization and bottling partners. Our portfolio of zero sugar or sugar-free energy drinks remained a significant contributor to U.S. growth. According to Nielsen, the Ultra brand family grew 19% in the 2026 second quarter compared to the 2025 second quarter. We view the Ultra family as a core contributor to growth within our portfolio, and we are complementing core SKUs with innovation, enabling us to reach new consumers. We are also sharpening our executional focus to include enhanced distribution and display presence. This includes prioritizing availability of the highest performing flavors and complementary package offerings to satisfy more usage occasions. Monster's full sugar portfolio also continued to contribute to sales growth and was led by the Juice Monster family, which increased 26% compared to the prior year. Innovation was meaningfully additive to second quarter sales growth, with products launched in fall 2025 and spring 2026, complemented by special limited time product offerings celebrating America's 250th anniversary across our Ultra, Juice Monster, Reign, and Bang brand families. During the quarter, we also accelerated our sampling and marketing efforts for Storm and Float. We continued to gain traction in FSOP, which is food service on premise. This includes the recently announced partnership between Marriott International and The Coca-Cola Company, which we believe will open significant distribution opportunities for Monster. Looking ahead, we believe we have a robust innovation pipeline that we will share at the upcoming NACS Show as we have done in prior years. In the United States, we have initiated discussions with our partners and customers to implement selective pricing actions effective during the 2026 fourth quarter. Now to sales international. Net sales to customers outside the United States increased 34.6% to $1.16 billion or approximately 46% of total net sales in the 2026 second quarter compared to $864.2 million or approximately 41% of total net sales in the 2025 second quarter. Net sales to customers outside the United States on a foreign currency adjusted basis increased 29% to $1.11 billion in the 2026 second quarter. Turning to EMEA, our net sales in the region in the 2026 second quarter increased by 27.2% in USD and increased 22.2% on a currency neutral basis over the same period in 2025. Gross profit in this region as a percentage of net sales for the 2026 second quarter was 38.8% versus 36.1% in the same period in 2025. We implemented a price increase in certain markets in EMEA in the 2026 second quarter. Are proposing price increases in certain other EMEA markets later in the year. According to Nielsen, the MEC portfolio of brands gained 220 basis points of value market share across the region in the 2026 second quarter compared to the prior year quarter. According to Nielsen, the energy drink category continues to grow double digits in EMEA, with our Monster brands growing at approximately twice the rate of the category. Also, according to Nielsen, for the last reported 13-week periods, which vary by country, our portfolio delivered 46% of the value sales growth of the energy drink category in EMEA, with contributions from both our core offerings and innovation across brand families. This growth reflects strong execution across markets, accelerated cooler placements, and space gains enabled by our strong partnership with our Coca-Cola Bottling partners. The Zero Sugar segment continues to grow ahead of the energy drink category in Europe. We are the market leader in the Zero Sugar segment of the category, with a 44.5% value share, according to Nielsen. Also, according to Nielsen, for the last 13-week period, Monster Zero Sugar products represented 38% of the value sales growth of the energy drink category in Europe. We also focused on expanding visibility for the Ultra family with retailers, which is key to bringing new consumers into the category and are continuing with the rollout of new Monster Ultra SKUs. During the quarter, we continued to expand Juice Monster Viking Berry across EMEA, accelerating the growth of the Juice Monster brand family. We launched special limited edition offerings of Oscar Piastri in both Monster Energy and Zero Sugar variants. The Gold limited edition, Monster Energy Lando Norris Zero Sugar, celebrating his 2025 Formula One World Championship, began rolling out into certain EMEA markets in July. Our affordable portfolio continued to gain momentum. According to Nielsen, we increased share in the affordable energy drink category in Egypt, Kenya, Morocco and Nigeria. We extended the rollout of Bang Energy as an affordable offering in Greece in the second quarter, following its launch in Spain in the 2026 first quarter. Turning to Asia Pacific. Net sales in Asia Pacific in the 2026 second quarter increased $35.7% and 36.7% on a currency neutral basis over the same period in 2025. Gross profit in this region as a percentage of net sales for the 2026 second quarter was 41.4% versus 41% in the same period in 2025. Net sales in Japan in the 2026 second quarter increased $14.5% and increased 24.5% on a local currency basis. Our Japan results benefited from the previously announced agreement to sell Monster Energy Green in vending machines owned by Coca-Cola Bottlers Japan Inc. Sales commenced in June and are off to a good start. Net sales in South Korea in the 2026 second quarter decreased $3.6% and increased 0.6% on a local currency basis as compared to the same quarter in 2025. Results were impacted by bottler inventory fluctuations as purchases far exceeded our shipments in the quarter. We remain the market leader in Korea. Net sales in China in the 2026 second quarter increased 62.5% in USD and increased 54% on a local currency basis as compared to the same quarter in 2025. Net sales in India in the 2026 second quarter increased 84% in USD and increased 100.3% on a local currency basis as compared to the same quarter in 2025. We began selling Predator in Pakistan and Azerbaijan in the second quarter. We remain optimistic about the long-term prospects for our brands in Asia Pacific and the expansion of our affordable brands in China and India. In Oceania, net sales in 2026 second quarter increased 57.8% in USD and increased 44.9% on a currency neutral basis as compared to the same quarter in 2025. Turning now to Latin America and the Caribbean. Net sales in Latin America, including Mexico and the Caribbean in the 2026 second quarter increased 56.1% in USD and increased 40.4% on a currency neutral basis over the same period in 2025. Gross profit in this region as a percentage of net sales was 46.2% for the 2026 second quarter versus 45.2% in the 2025 second quarter. Net sales in Brazil in the second quarter increased 82% in USD and increased 61.6% on a local currency basis. Net sales in Mexico increased 29.5% in USD and increased 20.5% on a local currency basis in the 2026 second quarter. Net sales in Chile in the 2026 second quarter increased 26.3% in USD and increased 21% on a local currency basis. Net sales in Argentina in the 2026 second quarter decreased 25.6% in USD and decreased 5.7% on a local currency basis. As discussed on previous calls, we have changed our operating model in Argentina to better manage our foreign exchange exposure. Shipment volume increased in the quarter, and we remain the market share leader in Argentina. Turning to Monster Brewing. On alcohol brands, net sales for the segment were $32.2 million in the 2026 second quarter, 15.2% lower than the 2025 comparable quarter. During this 2026 second quarter, no shares of the company's common stock were repurchased. As of August 5th, 2026, approximately $900 million remained available for repurchase under the previously authorized repurchase program. Turning to our stock split, as previously announced, the company's board of directors has approved and declared a two-for-one split of its common stock. The company anticipates its shares will begin trading at the split adjusted price on August 11th, 2026. Turning to July 2026 sales. We estimate that July 2026 sales, on a non-foreign currency adjusted basis, excluding the alcohol brand segment, were approximately 14.3% higher than the comparable July 2025 sales and 13.9% higher on a non-foreign currency adjusted basis, including the alcohol brand segment. We estimate that on a foreign currency adjusted basis, excluding the alcohol brand segment, July 2026 sales were approximately 13.9% higher than the comparable July 2025 sales and 13.5% higher on a foreign currency adjusted basis, including the alcohol brand segment. July 2026 had the same number of selling days as July 2025. In this regard, we caution again that sales over a short period are often disproportionately impacted by various factors, such as, for example, selling days of the week in which holidays fall, timing of new product launches, the timing of price increases and promotions in retail stores, distributor incentives, as well as shifts in the timing of production. In some instances, our bottlers are responsible for production and determine their own production schedules. This affects the dates on which we invoice such bottlers. Furthermore, our bottling and distribution partners maintain inventory levels according to their own internal requirements, which they may alter from time to time for their own business reasons. We reiterate that sales over a short period, such as a single month, should not necessarily be imputed to or regarded as indicative of results for a full quarter or any future period. In conclusion, I'd like to summarize some recent positive points. We had a strong second quarter with double-digit sales growth across all of our geographic regions. We gained share in many markets globally in the second quarter, including for the Monster brand in the U.S. We remain focused on the growth of our existing core offerings, as well as the continued introduction of product innovations, which remain central to our long-term growth strategy. We continue to expand our sales in non-Nielsen track channels with an objective to expand our FSOP business. Energy drink category continues to grow globally, and consumer demand, as measured by scanner data, remains strong. We believe that household penetration continues to increase in the energy drink category due to product functionality and affordable value proposition and lifestyle positioning. We are also seeing increases in purchase frequencies as well as usage occasions expanding across day parts. We continue to review opportunities for price increases, both domestically and internationally. We are continuing our digital transformation in order to modernize our enterprise platforms and strengthen end-to-end business capabilities across commercial operations and supply chain, including our upgrade to SAP S/4HANA, with a planned go-live date of January 1, 2028. Lastly, we are planning to host an investor meeting in New York City on December 1, 2026, and look forward to seeing many of you there. I would now like to open the floor to questions about the quarter. Thank you. Operator: Thank you. We will now begin the question and answer session. To ask a question, you may press star then one on your touch tone phone. If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star then two. In the interest of time, please limit yourself to one question. At this time, we will pause momentarily to assemble our roster. The first question today comes from Kaumil Gajrawala with Jefferies. Please go ahead. Kaumil Gajrawala: Hey, everybody. Good afternoon. Congratulations. I believe we're the end of earnings season for most of us. Great results. Hilton Schlosberg: Thanks. Kaumil Gajrawala: I'd like to dig into the commentary around the pricing. It sounds like it's some global decisions. It sounds like it's maybe piece by piece. Can you just maybe give us a little more detail on where, how much? Anything you're able to provide, I think, would be helpful. Hilton Schlosberg: Sure, Kaumil. We are fortunate we have Rob Gehring with us. We have Guy Carling with us here today. Rob, I'm going to ask Rob to talk about the U.S. piece. Guy will talk about the EMEA piece. Rob Gehring: You bet. Thanks for the question. Appreciate the compliment. We're proud of the results on behalf of all of our employees, our bottling partners, and our retail partners. We have consistently moved over the past few quarters and years to consistent pricing year upon year. We believe that our pricing model continues to drive volume growth. Our goal is to drive revenue ahead of volume and profit ahead of revenue. We believe it's working for us and our retail business partners. We also believe that modest inflation is good for the retail landscape. We're quite pleased with our results thus far. We will continue to do so. I'll turn it over to Guy. Guy Carling: Thanks, Rob. Look, I think the approach is consistent around the world. In EMEA, we've taken aggregate low single digits pricing. As part of an ongoing strategy, we take price on an opportunistic periodic basis in the context of the category and competitive dynamics in each country, and will continue to do so. Operator: The next question comes from Kevin Grundy with BNP Paribas. Please go ahead. Kevin Grundy: Great. Thanks. Good evening, everyone. Can you hear me okay? Hilton Schlosberg: Yeah, we can. Thank you. Kevin Grundy: First, just to echo, fantastic results internationally. A couple years ago, in the second and third quarter, we were talking about a bit of a slowdown ex-Argentina pricing, and the results really could not have come back more strongly, up 29% in the quarter. You seem to be, in most regions, growing 2x the category growth rate, and it is really broad-based. A couple questions here. Number one, maybe just comment on what you think is different about the business operational changes, better coordination with the Coke bottlers. Anything you can comment there that you think is really driving sustainably stronger results internationally. Then I know you don't like to guide, but maybe just talk a little bit about how you see the sustainability of this growth, what the runway is based on your market share, et cetera. Any color there I think would be helpful. Thank you. Hilton Schlosberg: I think let's start with EMEA. I can pick up with the rest of the world. Guy Carling: Thank you, Hilton, and thank you for the question. I think as with U.S. and around the world, the strong category growth in double-digit is driven by an overall strong value proposition, combined with brand image and category functionality, which are making the energy drink category all-day, multi-occasion beverages with a wide appeal across age groups. Our portfolio is over-indexing the category across these drivers and across these occasions, which, as per the script, is leading us to be 46% of category growth across EMEA. Structurally, we are outperforming the category with growth delivered both by existing SKUs and products, which are 42% of our growth, as well as innovation, which is 58% of our growth, versus the category, which is reliant predominantly on innovation. I think also, you mentioned our increasingly strong partnerships with the Coca-Cola bottling partners across the region. It continues to contribute and drive growth, increasing our availability and our average SKU assortment. It allows scaled innovation launches. We're expanding Monster-led energy zones with key retailers. We're accelerating our branded cooler footprint. This is contributing to higher rate of sale and consistent share gains across multiple markets. I think then another key factor is the zero sugar segment. That continues to accelerate. It's growing 23% in Europe, for example, versus 5% for full sugar. It's 63% of category growth. The Monster portfolio is responsible for 61% of zero sugar growth. We lead the segment as per the script with 44.5% share. The overall portfolio is balanced. We're offering consumers choice. Our full sugar range is growing at 10%, which is twice the rate of the category segment. Ultimately, the portfolio is offering, and specifically with Ultra, recruiting younger adults and females into the category and those that have a heavier drinking profile. I think it's a combination of ingredients that are contributing to the growth story. Hilton Schlosberg: Thanks, Guy. Turning to LATAM, we've had very strong growth in a number of countries in LATAM. You'll see the increase in sales that we spoke about earlier and the gross profit, which has come up nicely as well. In particular, I've got to call out Brazil. We've got incredibly strong growth in Brazil. Brazil's soon to become one of our very top countries in terms of sales. We've got great teams that are operating well and working well with the Coca-Cola bottlers. We have major investments going forward with coolers. Innovation is playing a very big role. We're excited about the future in LATAM. Turning to Asia very quickly. Most of the world's population lives in emerging and developing markets. Again, that's a big opportunity for us. We're opening a number of markets in Asia-Pacific. We're working very closely with the Coca-Cola bottlers in that area as well. India and China, I know there were a lot of stresses, I think, both on our side and on your side over the years. The achievements in India and China are also very respectable. Operator: The next question comes from Filippo Falorni with Citi. Please go ahead. Filippo Falorni: Hi. Good afternoon, everyone. I wanted to ask about the innovation pipeline for this year. Obviously, a lot of different launches that you had. Can you give us a context of how this year compared to prior years? In particular, I wanted to ask about the limited time offerings that you had around America's 250th. What were the learnings around LTOs? I know this is a bit of a different innovation approach versus your prior, could we see more of this? The second part on the FLRT and the female-oriented energy. Can you give us an update there? What are your expectation for the brand? Thank you. Hilton Schlosberg: Just this year, we had staggered launches of innovation versus one-time launches that we had historically. We were staggered this year, and we were able to achieve better execution, I think, this year than in past years. Also, the LTO. The LTOs were really successful, as you guys no doubt will see through your own Nielsen numbers. We've been really pleased about our LTOs and, in particular, Ultra Red, White, and Blue accounted for 5% of sales in scanner since the national launch in May. That all worked incredibly well. For 2026, we have some innovation coming in the fall, in 2027, we have a full innovation calendar that we will be presenting and looking forward to sharing with you at NACS in October. Turning to FLRT. We still think FLRT is early, as marketing efforts and ready to spend only started in June. We feel we are reaching the right target audience. We're working on repeat, but building a base. We have an exciting LTO plan for the brand as well later this year, and NPD for next year as well, which you'll see at NACS. Overall, we really do think it's too early to tell, but we remain committed to the brand. Operator: The next question comes from Dara Mohsenian with Morgan Stanley. Please go ahead. Dara Mohsenian: Hey, guys. We've been in a period of much higher growth for the energy category in Monster for a year and a half now. The category's really brought in new customers with innovations, zero sugar products, et cetera, in recent years. I'd also argue that there's been a ramp-up in permissibility of the energy category in general from a consumer standpoint. I'd just love to hear post that greater permissibility with this expanded consumer base. Are there incremental areas from here where you think about incremental penetration, where perhaps you haven't had as much success or traction before now enabled by this recent success you've had that might be food service or vending from a channel standpoint where partners are even more excited to carry your products, maybe smaller can sizes with more female or health-oriented consumer penetration. I'd just love any thoughts on sort of under-penetrated areas and plans you have going forward and what might be enabled by this recent success you've had. Thanks. Hilton Schlosberg: Dara, I think that's a really good question. We spoke earlier on the call about FSOP, and we feel that's a big opportunity for us. You've read about the Marriott opportunity, which we worked together on with Coke and looking forward to success there. We've launched 12 ounce to appeal to a broader audience. You saw in the quarter that we accelerated some of our marketing to address the new consumer and expand household penetration. The new entrants into the category differ from the traditional category drinkers. You've got Gen Z over-indexing versus other generations and women driving incremental growth. Notably, as Rob mentioned earlier, I think I mentioned earlier as well, zero sugar accounts for more than 75% of category growth. The category is still bringing in new consumers. Household penetration hasn't reached its peak, I believe. We have a lot of opportunities there. Operator: The next question- Hilton Schlosberg: I think Rob wanted to. Oh, sorry. Operator: Pardon me. Go ahead. Hilton Schlosberg: Dara, I think Rob wanted to make a point. Rob? Rob Gehring: Yeah, Dara, if I could just make a quick point. Great question. We constantly try to use innovation as a recruiting tool. Based on our last cut of household panel, we're bringing in consumers at twice the rate of the category. The new entrants to the category is about 19%. We're bringing in almost twice that rate. The goal of using innovation to, one, drive our core business and always fuel our core growth, but also recruitment. We believe recruitment is critical to our success. Operator: The next question comes from Robert Ottenstein with Evercore. Please go ahead. Robert Ottenstein: Great. Thank you very much. I just wanted to touch, if you could touch on the Marriott win. I know you're not going to tell us how big it is. What I'm really interested in is kind of how it came about working with the Coca-Cola system. My sense is it's the first or one of the first major contracts that you've done hand in hand with the Coca-Cola system. Perhaps if you can talk about how you and the Coca-Cola system may be executing differently on these global accounts or large customers, anything along those lines, because it does seem to be a significant change and improvement over a few years ago. Thank you. Hilton Schlosberg: I think that's a good question. I think we've spoken in the past about the relationship that we have with the new C-suite at Coke, looking forward to working very closely with them in the future. We are doing a lot of work with them. I think our business is complementary to the business that they offer, a lot of FSOP customers now are requiring energy drinks as part of their product offerings. My belief is that we'll continue to work very closely with the company and the bottlers to create a really good business in FSOP. Operator: The next question comes from Bonnie Herzog with Goldman Sachs. Please go ahead. Bonnie Herzog: Thank you. Hi, everyone. Hilton Schlosberg: Hi, Bonnie. Bonnie Herzog: Hi. A question on your operating expenses, including both distribution and selling expenses, which stepped up on a per case basis in Q2. Just trying to understand if there was something unique in the quarter, maybe color on the drivers of the higher expenses. Ultimately, should we think about per case operating expenses in Q2 as a good run rate, or could this move lower moving forward? Thank you. Hilton Schlosberg: The quarter was marked by increases in distribution expenses, largely freight and fuel. That's something I'm sure that you've seen across a broad base of companies. That's something that we hope will come down in terms of political settlements. Right now we have to deal with that. Secondly, our 2026 marketing strategy, we built that to capture the evolving consumer. We expanded our portfolio and our communications to better align with the new lifestyles that I spoke about earlier and the need states. To connect with a broad and younger audience, there were a lot of additions that we did this year that we hadn't done historically. For example, we launched Lando Norris in the U.S. in Miami as a full SKU this year. There was Formula One. We had the Morgan Wallen tour that we spoke about earlier. We had the UFC fight at the White House and the additional expenses of that. In May, we started our largest campaign of the year, which we called Unleash the Beast for the Next Generation. There we had connected TV, programmatic, social, and retail media, and the campaign enforced Monster as the badge of those who want an energy drink that's got image, culture, style. Featured Gen Z athletes such as Lando Norris, Rayssa Leal, and Haiden Deegan. All of these were conscious attempts to address the new consumer and to keep ourselves culturally together and reinforce the properties and the benefits of the brand. Operator: The next question comes from Chris Carey with Wells Fargo Securities. Please go ahead. Chris Carey: Hi, everybody. Thank you for the question. Hilton, I just wanted to go back to the comment around pricing, maybe bring in the inflation angle as well. I think in your prepared remarks, you said something to the extent that aluminum inflation will increase a bit into the back half of the year relative to where you just were. It seemed like you had made a point to say through 2026, and just conscious that Q2 gross margins feel like they came in a bit better than expectation. When you spoke about pricing, it was more in the context of additional potential actions in EMEA as opposed to global pricing. The question I suppose is your confidence around your ability to protect gross margins, say, without a major global pricing round getting a bit better? Perhaps that's because of easing inflation relative to where it had been at peak. Maybe that's because of the strength of the low sugar or zero sugar offerings helping your mix. I just can't help but think that the gross margins are coming in a bit better and you feel maybe a bit less need to take as much pricing with a changing evolution of the macro or maybe the business model. I'd be curious how you'd entertain anything there. Thanks so much. Hilton Schlosberg: Yeah. We have inflation across the board. We spoke a little bit about distribution expenses earlier, and that was a big chunk of change. We look at aluminum. We hedge a portion of our aluminum, as everybody knows, and we use a ladder approach. Which means that we don't buy everything on the same day. We structure a ladder for our aluminum hedges. Of course, we've had this huge increase from the Midwest premium, which is a very limited market that we have hedged, but probably not sufficiently as if we'd known today what we knew when the hedges were being placed. We are looking at additional aluminum costs going forward, and that's something that we're dealing with. We believe that the addition is going to be modest, but it's something that we still have to deal with. In terms of inflation, we live in a world with other consumer goods companies that are subject to inflation and all sorts of things, and all sorts of purchasing of raw materials and other materials that they need in their business. We will continue to see increases through inflation in our business. We will continue to see increases in aluminum and in freight, and in fuel until such time as things regularize. We continue to review opportunities for price increases, both domestically and internationally. You heard from Guy, you heard from Rob about the price increases that had been implemented historically and where we're looking to head going forward. On the gross margin, obviously, we would like as high a gross margin as possible. Remember what happens, it's great having these significant international sales, but they come at a gross margin percentage cost. We don't make the same gross margins as we do in the U.S. from our international markets. That's something that we've spoken about many times on the calls before. I've always said we bank dollars, we don't bank percentages. Overall, I think we are pleased with where we are, and we're going to continue to do the very best we can in delivering gross margins the best we can achieve. Operator: This concludes our question and answer session. I would like to turn the conference back over to Hilton Schlosberg for any closing remarks. Hilton Schlosberg: Thank you. On behalf of Monster, I'd like to thank everyone for the interest in the company. We're confident in the strength of our brands and the talent of our entire Monster family throughout the world. I'm excited to be working with them and thank them all for their contributions. We believe in the company and our growth strategy and are committed to innovating, developing, and differentiating our brands and expanding the company both at home and abroad. We are proud of our relationship with the Coca-Cola system and the opportunities this presents to us. We believe that we are well-positioned in the beverage industry and are optimistic about the future of our company. Thank you so much for your attendance. Operator: The conference has now concluded. Thank you for attending today's presentation. You may now disconnect. Before you buy stock in Monster Beverage, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Monster Beverage wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $400,209!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,375,393!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 13, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has positions in and recommends Monster Beverage. The Motley Fool has a disclosure policy. Monster (MNST) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

All five Dividend Aristocrats posted better-than-expected Q2 earnings, raised full-year guidance, and carry Buy ratings from top Wall Street firms. American States Water (AWR) crushed Q2 estimates and rewarded shareholders with an 8% dividend hike, extending its 70-year streak of consecutive increases. Stanley Black & Decker (SWK) delivered a massive earnings beat, reporting $1.57 adjusted EPS versus the $1.21 consensus, while yielding 3.24%. It sounds nuts, but SoFi1 is giving new Active Invest users up to $3,000 in stock for a limited time, and all it takes is a $50 deposit to get started.2 See for yourself (Sponsor) Investors love dividend stocks because they provide dependable passive income streams and an excellent opportunity for solid total return. Total return includes interest, capital gains, dividends, and distributions realized over time. In other words, the total return on an investment or portfolio consists of income and stock appreciation. At 24/7 Wall St., we have focused on dividend stocks for over 15 years because, despite the stock market's ups and downs, many people need reliable passive income streams to supplement their income from employment or other sources such as Social Security and pensions. Investors seeking defensive companies that pay substantial dividends are drawn to the Dividend Aristocrats, and with good reason. The 69 companies that made the cut for the 2026 S&P 500 Dividend Aristocrats list have increased their dividends (not just maintained them) for 25 consecutive years. But the requirements go even further, with the following attributes also mandatory for membership on the Aristocrats list: SoFi Active Invest is offering a limited-time promotion. Open an account, fund it with $50 or more, and you could receive up to $3,000 in complimentary stock for Active Invest accounts. See for yourself by clicking here now. (Sponsor) Companies must be worth at least $3 billion for each quarterly rebalancing. Their average daily volume must be at least $5 million in transactions for every trailing three-month period at every quarterly rebalancing date. They must be S&P 500 members. With earnings for the second quarter all but over, we decided to screen the Dividend Aristocrats for the companies that posted better-than-expected results and also offered solid forward guidance for the rest of the year. Five top companies hit our screens and look like outstanding ideas for growth and income investors looking to shift their portfolios away from high-beta stocks to more conservative ideas that pay reliable dividends. All five are rated Buy by the top Wall Street firms we cover, and all offer solid entry points. S&P 500 companies that have paid and raised their dividends for 25 years or longer are the types that growth and income investors want to buy and hold in their stock portfolios for the long term. These stocks are mostly conservative, and should we see a dramatic market correction, they will likely keep their ground much better than volatile technology names. When you have products that everyone depends on and pay a very reliable 2.30% dividend that you have raised for 70 years, your investors will likely do well. American States Water (NYSE: AWR) is a holding company with segments in water, electric, and contracted services. The company crushed Q2 expectations, reporting earnings of $1.09 per share. The solid print allowed the company to increase the quarterly dividend by 8%. Within the segments, the company has three principal business units: water and electric service utility operations conducted through its regulated utilities, Golden State Water Company (GSWC) and Bear Valley Electric Service (BVES), respectively, and contracted services conducted through American States Utility Services (ASUS) and its subsidiaries. GSWC is a public water utility engaged in the purchase, production, distribution, and sale of water in 11 counties in the state of California, and provides wastewater collection and treatment services. BVES is a public electric utility that distributes electricity in several San Bernardino County Mountain communities in California. ASUS operates, maintains, and performs construction activities (including renewal and replacement capital work) on water and/or wastewater systems at various United States military bases. Weiss Ratings has a Buy rating but no target price. Coca-Cola (NYSE: KO) is an American multinational corporation founded in 1892. This company remains a top long-time holding of Warren Buffett, whose 400 million shares are 9.3% of the float and 9.9% of the portfolio. The stock pays a dependable 2.41% dividend. The company posted strong results, reporting $13.37 billion in revenue and $0.97 in comparable EPS, beating consensus estimates and raising its full-year earnings growth forecast to 8% to 9%. Coca-Cola is the world's largest beverage company, offering consumers more than 500 sparkling and still brands. Led by Coca-Cola, one of the world's most valuable and recognizable brands, the company's portfolio features 20 billion-dollar brands, including: Diet Coke Coca-Cola Light Coca-Cola Zero Sugar Caffeine-free Diet Coke Cherry Coke Fanta Orange Fanta Zero Orange Fanta Zero Sugar Fanta Apple Sprite Sprite Zero Sugar Simply Orange Simply Apple Simply Grapefruit Fresca Schweppes Dasani Fuze Tea Glacéau Smartwater Glacéau Vitaminwater Gold Peak Ice Dew Powerade Topo Chico Minute Maid Globally, it is the top provider of sparkling beverages, ready-to-drink coffees, juices, and juice drinks. Through the world's most extensive beverage distribution system, consumers in more than 200 countries enjoy the company’s beverages at a rate of over 1.9 billion servings per day. And remember that the company owns 19.5% of Monster Beverage (NASDAQ: MNST), which continues to deliver strong financial results. UBS has a Buy rating with a $104 target price. While somewhat off the radar, this company has increased the 1% dividend for an incredible 70 consecutive years. Dover (NYSE: DOV) is a diversified global manufacturer and solutions provider operating in five primary segments. The company posted strong quarterly results, with adjusted EPS climbing 12% to $2.74. This growth was fueled by a 7% rise in total revenue, including 5% from organic operations. Year over year, bookings surged 16%, pushing the book-to-bill ratio to a solid 1.06, largely thanks to robust demand across the data center, biopharma, and aerospace sectors. On the strength of this performance, Dover raised its full-year guidance for both organic revenue and adjusted earnings. Its five operating segments are: The Engineered Products segment provides a range of equipment, components, software, solutions, and services to the vehicle aftermarket, aerospace, defense, and other industries. Its Clean Energy & Fueling segment provides components, equipment, and software solutions and services. It also designs, manufactures, and supplies vacuum-insulated piping systems for various liquefied gases, including nitrogen, oxygen, carbon dioxide, and other industrial gases. The company's Imaging & Identification segment supplies precision marking and coding, product traceability, brand protection, and digital textile printing equipment. The Pumps & Process Solutions segment manufactures specialty pumps and flow meters, fluid transfer connectors, engineered precision components, instruments, and digital controls. Dover's Climate & Sustainability Technologies segment is a provider of energy-efficient equipment, components, and parts. Baird has an Outperform rating with a $270 target price. Founded in 1962, Federal Realty Investment Trust (NYSE: FRT) has a mission to deliver long-term, sustainable growth through investing in densely populated, affluent communities. While real estate has slowly recovered, demand is still growing, and hard assets are generally considered a prudent investment in times of inflation; this company pays a hefty 3.81% dividend. Federal Realty is a recognized leader in the ownership, operation, and redevelopment of high-quality retail-based properties in major coastal markets from the District of Columbia and Boston to San Francisco and Los Angeles. The company outperformed expectations, posting a strong 96% occupancy rate across its retail portfolio in the second quarter. Consistent growth in rental income underpinned its 59th consecutive annual dividend increase, a milestone that underscores the stability of its business. Its expertise includes creating urban, mixed-use neighborhoods like: Santana Row in San Jose, California Pike & Rose in North Bethesda, Maryland Assembly Row in Somerville, Massachusetts Federal Realty's portfolio comprises approximately 3,500 tenants across 27 million square feet of space and 3,100 residential units. Federal Realty has increased its quarterly dividend to its shareholders for 59 consecutive years, the longest record in the REIT industry. Piper Sandler has an Overweight rating with a $149 target price. Stanley Black & Decker (NYSE: SWK) is the world's largest tool company, with 50 manufacturing facilities in the United States and more than 100 worldwide, and its shares trade at 17.7 times forward earnings. With the potential for the economy to slow down somewhat, consumers are likely to repair rather than buy new, and this legendary stock is a solid idea now, while yielding a dependable 3.19% dividend. The company provides hand tools, power tools, outdoor products, and related accessories in North and South America, Europe, and Asia. The company reported solid Q2 2026 financial results, delivering a big earnings beat as adjusted EPS climbed to $1.57, significantly beating Wall Street consensus expectations of $1.21. Its Tools & Outdoor segment offers professional-grade corded and cordless electric power tools and equipment, including: Drills Impact wrenches and drivers Grinders, saws, routers, and sanders Pneumatic tools and fasteners, such as nail guns, nails, staplers and staples, and concrete and masonry anchors; corded and cordless electric power tools Hand-held vacuums, paint tools, and cleaning appliances Leveling and layout tools, planes, hammers, demolition tools, clamps, vises, knives, saws, chisels, and industrial and automotive tools Drill, screwdriver, router bits, abrasives, saw blades, and threading products Toolboxes, sawhorses, medical cabinets, and engineered storage solutions Electric and gas-powered lawn and garden products This segment sells its products under such brand names as: DeWalt Craftsman Black+Decker Stanley Flex Volt Irwin Lenox The Industrial segment provides: Threaded fasteners, blind rivets and tools, blind inserts and tools Drawn arc weld studs and systems Engineered plastic and mechanical fasteners Self-piercing riveting systems Precision nut running systems Micro fasteners High-strength structural fasteners Axle swage, latches, heat shields, pins, couplings, fittings, and other engineered products Attachments used on excavators and handheld tools The Industrial segment sells its products through a direct sales force and third-party distributors to various industries, including automotive, manufacturing, electronics, construction, aerospace, and others. Citigroup has a Buy rating on the shares and a $107 target price. Looking to grow your money but unsure where to begin? SoFi Active Invest is offering a limited-time promotion—open a new Active Invest account, fund it with $50 or more, and you could receive up to $3,000 in complimentary stock. From $0 commission trading3 to fractional shares4 and automated investing, this app is designed to simplify investing for everyone, whether you’re just starting or already experienced. Its easy to sign up and secure your bonus.(Sponsor) Contact [email protected] for any questions or corrections.

In the past week, Monster Beverage Corporation reported Q2 2026 results, with sales rising to US$2,537.47 million and net income to US$584.54 million, alongside higher earnings per share from continuing operations versus a year earlier. These results highlighted especially strong international momentum, as overseas markets and new product launches played a large role in lifting overall performance despite higher marketing and distribution costs. We’ll now examine how this strong international-driven quarter reshapes Monster Beverage’s investment narrative and what it may mean for margins. We've uncovered the 8 dividend fortresses yielding 5%+ that don't just survive market storms, but thrive in them. To own Monster Beverage, you have to believe its brand, innovation and expanding global reach can justify a premium price tag despite rising costs and competition. The latest quarter’s strong, internationally driven sales and earnings support that view, but the short term catalyst around margin resilience is less clear given higher marketing and distribution spend, keeping the key risk of sustained margin pressure very much in focus. Among recent developments, the upcoming 2 for 1 stock split is most relevant here, as it follows a quarter with US$2,537.47 million in sales and US$584.54 million in net income. While the split itself does not change value, it lands just as Monster’s higher expenses are weighing on margins, which could sharpen attention on whether future quarters can balance continued international growth with profitability. Yet even with these strengths, investors should be aware that rising costs and shifting international mix could still compress margins and... Read the full narrative on Monster Beverage (it's free!) Monster Beverage's narrative projects $11.6 billion revenue and $2.8 billion earnings by 2029. This requires 9.5% yearly revenue growth and about a $0.8 billion earnings increase from $2.0 billion. Uncover how Monster Beverage's forecasts yield a $96.39 fair value, a 112% upside to its current price. Some of the lowest ranked analysts were already assuming slower progress, with revenue only reaching about US$11.3 billion and earnings US$2.8 billion by 2029, so this quarter’s strong international beat may prompt them to revisit how quickly risks like lower pricing power abroad and heavier promotion could affect that more cautious story. Explore 5 other fair value estimates on Monster Beverage - why the stock might be worth 7% less than the current price! Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts. A great starting point for your Monster Beverage research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision. Our free Monster Beverage research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Monster Beverage's overall financial health at a glance. Don't miss your shot at the next 10-bagger. Our latest stock picks just dropped: Invest in the nuclear renaissance through our list of 90 elite nuclear energy infrastructure plays powering the global AI revolution. Find 47 companies with promising cash flow potential yet trading below their fair value. The best AI stocks today may lie beyond giants like Nvidia and Microsoft. Find the next big opportunity with these 16 smaller AI-focused companies with strong growth potential through early-stage innovation in machine learning, automation, and data intelligence that could fund your retirement. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include MNST. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Five Dividend Kings with 50+ consecutive years of dividend increases beat Q2 earnings, making them defensive picks in a frothy, overbought market. Warren Buffett's KO beat Q2 EPS and upgraded full-year guidance, while FRT posted 96% occupancy and its 59th straight annual dividend increase. AWR raised its quarterly dividend 8% after Q2 EPS jumped to $1.09, extending its remarkable 70-year streak of consecutive dividend increases. It sounds nuts, but SoFi1 is giving new Active Invest users up to $3,000 in stock for a limited time, and all it takes is a $50 deposit to get started.2 See for yourself (Sponsor) Investors seeking defensive companies that pay substantial dividends are drawn to the Dividend Kings, and for good reason. The 58 companies that made the cut for the 2026 Dividend Kings list have increased their dividends (not just maintained them) for 50 consecutive years. Companies that have raised dividends for 50 or more consecutive years are exactly the kinds of investments passive income investors need to own. Dependability is crucial for individuals seeking to increase their annual income through dividend stock investments. With the second-quarter earnings season winding down, we wanted to see which companies in the legendary group posted the best results, and we were not disappointed. Some of the top companies, including a Warren Buffett favorite, posted stellar results and some outstanding forward-looking guidance. These are companies that make sense for growth and income investors seeking timely ideas in an overbought, frothy stock market. Companies that have paid and raised dividends for 50 years or more are the kinds of stocks growth and income investors want to buy and hold in stock portfolios forever. These stocks are mostly conservative, and should we see a dramatic market correction, they will likely hold their ground much better than volatile technology names. SoFi Active Invest is offering a limited-time promotion. Open an account, fund it with $50 or more, and you could receive up to $3,000 in complimentary stock for Active Invest accounts. See for yourself by clicking here now. (Sponsor) When you have products that everyone depends on and pays a very reliable 2.35% dividend that has been raised for 70 years, your investors will likely do well. American States Water (NYSE: AWR) is a holding company with segments in water, electric, and contracted services. The company reported strong Q2 EPS of $1.09 (up from $0.87 year over year) and raised its quarterly dividend by 8.2% following strong execution in utility and contracted services. Within the segments, the company has three principal business units: water and electric service utility operations conducted through its regulated utilities, Golden State Water Company (GSWC) and Bear Valley Electric Service (BVES), respectively, and contracted services conducted through American States Utility Services (ASUS) and its subsidiaries. GSWC is a public water utility that purchases, produces, distributes, and sells water in 11 counties in the state of California. It provides wastewater collection and treatment services. BVES is a public electric utility that distributes electricity in several San Bernardino County Mountain communities in California. ASUS operates, maintains, and performs construction activities (including renewal and replacement capital work) on water and/or wastewater systems at various United States military bases. This company has raised its dividend for an impressive 77 years, yielding 2.57%. California Water Service (NYSE: CWT) is a holding company that provides water utility and other related services in California, Washington, New Mexico, Hawaii, and Texas. The company reported that net income rose to $56.5 million ($0.93 per share), up from $42 million in the prior year, backed by new rate case recognitions and infrastructure investments. Its business is conducted through its operating subsidiaries and provides utility services. The business consists of the production, purchase, storage, treatment, testing, distribution, and sale of water for domestic, industrial, public, and irrigation uses, as well as domestic and municipal fire protection services. The company provides wastewater collection and treatment services, including treatment that allows water recycling. It also provides non-regulated water-related services under agreements with municipalities and other private companies. The non-regulated services include full water system operation, meter reading, and billing services. Non-regulated operations also include the lease of communication antenna sites, lab services, and promotion of other non-regulated services. Coca-Cola (NYSE: KO) is an American multinational corporation founded in 1892. This company remains a long-time top holding of Warren Buffett, who owns a massive 400 million shares, or 9.3% of the float and 9.3% of the portfolio. The stock comes with a dependable 2.39% dividend, which was raised to $0.53 per share in May 2026, marking the 64th straight year of dividend increases. The company reported second-quarter revenue of $13.37 billion and comparable EPS of $0.97, beating expectations, and raised its full-year earnings growth forecast. Coca-Cola is the world's largest beverage company, offering consumers more than 500 sparkling and still brands. Led by Coca-Cola, one of the world's most valuable and recognizable brands, the company's portfolio features 20 billion-dollar brands, including: Diet Coke Coca-Cola Light Coca-Cola Zero Sugar Caffeine-free Diet Coke Cherry Coke Fanta Orange Fanta Zero Orange Fanta Zero Sugar Fanta Apple Sprite Sprite Zero Sugar Simply Orange Simply Apple Simply Grapefruit Fresca Schweppes Dasani Fuze Tea Glacéau Smartwater Glacéau Vitaminwater Gold Peak Ice Dew Powerade Topo Chico Minute Maid Globally, it is the top provider of sparkling beverages, ready-to-drink coffees, juices, and juice drinks. Through the world's most extensive beverage distribution system, consumers in more than 200 countries enjoy the company’s beverages at a rate of over 1.9 billion servings per day. Plus, the company owns 19.5% of Monster Beverage (NASDAQ: MNST), which continues to deliver strong financial results. Founded in 1962, Federal Realty Investment Trust (NYSE: FRT) continues to deliver long-term, sustainable growth by investing in densely populated, affluent communities and pays a strong 3.83% dividend. Real estate demand is still growing, and hard assets are generally considered prudent investments during periods of inflation. Federal Realty is a recognized leader in the ownership, operation, and redevelopment of high-quality retail-based properties in major coastal markets from the District of Columbia and Boston to San Francisco and Los Angeles. The company posted Q2 funds from operations of $1.88 per share (beating mid-guidance expectations), alongside strong 96% occupancy and its 59th consecutive annual dividend increase. Federal Realty's mission is to deliver long-term, sustainable growth through investing in densely populated, affluent communities where retail demand exceeds supply. Its expertise includes creating urban, mixed-use neighborhoods like: Santana Row in San Jose, California Pike & Rose in North Bethesda, Maryland Assembly Row in Somerville, Massachusetts Federal Realty's portfolio comprises approximately 3,500 tenants across 27 million square feet of space and 3,100 residential units. Federal Realty has increased its quarterly dividend for 57 consecutive years, the longest streak in the REIT industry. Procter & Gamble (NYSE: PG) was founded more than 185 years ago as a soap-and-candle company, and it currently pays a 2.92% dividend. The company is focused on providing branded consumer packaged goods to consumers worldwide. The consumer staples giant posted earnings per share of $1.43, beating estimates of $1.41, on steady revenue, and it continued its 70-year streak of dividend increases, raising it 3% in April. The company’s segments include: Beauty Grooming Health Care Fabric & Home Care Baby Feminine & Family Care Its products are sold in approximately 180 countries and territories primarily through mass merchandisers, e-commerce, including social commerce channels, grocery stores, membership club stores, drug stores, department stores, distributors, wholesalers, specialty beauty stores, including airport duty-free stores, high-frequency stores, pharmacies, electronics stores, and professional channels. It also sells directly to individual consumers. It has operations in approximately 70 countries. Procter & Gamble offers products under such brands as: Head & Shoulders Herbal Essences Pantene Rejoice Olay Old Spice Safeguard Secret SK-II Braun Gillette Venus Crest Oral-B Ariel Downy Gain Tide Always Always Discreet Tampax Bounty Looking to grow your money but unsure where to begin? SoFi Active Invest is offering a limited-time promotion—open a new Active Invest account, fund it with $50 or more, and you could receive up to $3,000 in complimentary stock. From $0 commission trading3 to fractional shares4 and automated investing, this app is designed to simplify investing for everyone, whether you’re just starting or already experienced. Its easy to sign up and secure your bonus.(Sponsor) Contact [email protected] for any questions or corrections.

Celsius Holdings, Inc. CELH reported a second-quarter earnings miss even as its broader beverage portfolio continued to expand. Revenues rose 10.6% year over year to $817.9 million, supported by Alani Nu and Rockstar, but adjusted earnings fell 23% to 36 cents per share. The quarter sharpened the divide inside the portfolio. Alani Nu is adding consumers, distribution and innovation-driven growth, while the flagship CELSIUS brand is working through SKU rationalization, softer retail trends and inventory rebalancing. Contracting margins add another hurdle, making the next phase of the story less about portfolio scale and more about whether that scale can translate into better earnings. Adjusted earnings of 36 cents per share missed the Zacks Consensus Estimate of 42 cents. Revenues of $817.9 million also fell short of the $883 million consensus mark, although the top line increased 10.6% from the prior-year quarter. The growth came from a broader portfolio rather than uniform brand momentum. Alani Nu contributed $364.4 million in second-quarter revenues and Rockstar added about $66.5 million, while CELSIUS brand revenues declined 11.7%. That mix helped consolidated revenues grow despite weakness in the company’s flagship franchise. Portfolio retail trends were stronger than reported revenues. U.S. tracked-channel retail sales across CELSIUS, Alani Nu and Rockstar increased 31% in the quarter, and the portfolio held about 20.1% of the U.S. ready-to-drink energy category. The gap between portfolio growth and core-brand performance remains the key issue after the report. Celsius Holdings Inc. price-consensus-eps-surprise-chart | Celsius Holdings Inc. Quote Alani Nu remains Celsius Holdings’ clearest near-term growth engine. The brand generated about $364.4 million in second-quarter revenues, up roughly 21% year over year, while tracked-channel retail sales advanced 55.7%. Its U.S. ready-to-drink energy dollar share reached about 8.7%. Innovation is helping sustain that momentum. Purple Cotton Candy became Alani Nu’s top-selling new flavor during the quarter, following launches such as Cherry Bomb and Lime Slush. Management said successful limited-time flavors can graduate into permanent placements, which can help expand the brand’s core assortment as it scales. Monster Beverage Corporation MNST is a relevant industry benchmark, with its Monster Energy Drinks segment posting 27.6% net-sales growth in the first quarter of 2026. CELSIUS brand revenues fell 11.7% year over year in the second quarter, while tracked-channel retail sales declined 2%. The brand’s U.S. ready-to-drink energy dollar share was about 9.5%, down from roughly 9.9% in the first quarter. Management tied the pressure to SKU optimization, delayed installation of targeted retail space, limited innovation, increased trade and promotional spending, softness in the club channel and distributor inventory rebalancing. The rationalization reduced distribution points before all planned shelf and cooler gains were in place. PepsiCo, Inc. PEP remains central to execution because its direct-store-delivery system distributes CELSIUS, Alani Nu and Rockstar in the United States. There are early productivity signs. Dollars per point of distribution increased about 16% from the first quarter to the second despite roughly 7% fewer distribution points. Fizz-Free tracked-channel dollar sales also rose more than 20% sequentially. Those improvements have not yet restored brand growth. Management expects the third quarter to look similar to the second before CELSIUS returns to growth exiting 2026, with additional 16-ounce innovation planned for early 2027. That timing makes the next several quarters an execution test rather than a confirmed recovery. Gross margin declined 340 basis points year over year to 48.1% in the second quarter. Higher promotional activity and direct-store-delivery channel mix pressured profitability, while aluminum and fuel costs offset some benefits from freight optimization and acquisition integration. Adjusted EBITDA fell 12% to $184.2 million, with adjusted EBITDA margin dropping to 22.5% from 28.4%. The margin contraction explains why double-digit revenue growth did not translate into higher adjusted earnings. Celsius Holdings is pursuing several offsets, including a second North Carolina manufacturing line, direct sourcing, freight improvements and price-pack architecture. Still, management expects third-quarter gross margin to remain in the high 40s at current diesel and aluminum levels. The earnings recovery could therefore lag revenue growth even if portfolio sales remain healthy. Rockstar contributed about $66.5 million in second-quarter revenues, but consumer demand remains soft. Tracked-channel retail sales declined 13% year over year, and the brand held about 1.9% of U.S. ready-to-drink energy dollar share. The integration was completed in June, shifting the focus from operational transition to demand stabilization. Management has cited early velocity gains after SKU rationalization and said Rockstar is tracking in line with the sales expectations set at acquisition. The company is also refreshing packaging and focusing marketing around motorsports, music and gaming. The key issue is timing. Management continues to position 2026 as a stabilization year and Rockstar for a stronger 2027. Until retail growth improves, the brand adds scale to CELH’s portfolio but does not provide the same demand momentum as Alani Nu. Image Source: Zacks Investment Research The second-quarter report showed that Alani Nu can offset part of the weakness in the CELSIUS brand, but it has not yet fully offset the earnings impact of softer core trends and lower margins. That distinction matters because consolidated revenue growth can remain healthy while profitability stays under pressure. CELH currently carries a Zacks Rank #5 (Strong Sell). The stock also has a Growth Score of A, Momentum Score of B, Value Score of D and VGM Score of B. The favorable Growth and Momentum Scores highlight the portfolio’s expansion potential, but the Zacks Rank remains the more important near-term signal because it incorporates the direction of earnings-estimate revisions. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. For investors evaluating the Q2 event, the next proof points are clear: CELSIUS brand growth needs to stabilize, margin initiatives need to overcome commodity and promotional pressure, and Rockstar needs to show better retail demand. Until those trends improve, Alani Nu is carrying more of the portfolio’s growth burden than the headline revenue increase alone suggests. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Celsius Holdings Inc. (CELH) : Free Stock Analysis Report PepsiCo, Inc. (PEP) : Free Stock Analysis Report Monster Beverage Corporation (MNST) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Monster Beverage Corporation MNST posted strong second-quarter 2026 results, with earnings and sales topping expectations. Adjusted earnings were 60 cents per share, up 15.2% year over year and surpassing the Zacks Consensus Estimate of 59 cents.Revenues jumped 20.2% year over year to $2.54 billion, beating the consensus mark of $2.42 billion by 5%. Results benefited from robust international growth and strength in the core energy-drink business. Monster Beverage Corporation price-consensus-eps-surprise-chart | Monster Beverage Corporation Quote Net sales in the Monster Energy Drinks segment increased 21.6% year over year to $2.36 billion. On a foreign currency-adjusted basis, segment sales advanced 19.3%. The segment includes Monster Energy, Reign, Bang, Storm and FLRT products.The Strategic Brands segment generated net sales of $143.7 million, up 10.6% from the prior-year quarter. Currency-adjusted sales increased 8.1%. Meanwhile, Alcohol Brands sales declined 15.2% to $32.2 million, while Other segment sales fell 15.3% to $5.4 million. Net sales to customers outside the United States surged 34.6% to $1.16 billion, accounting for about 46% of total sales compared with 41% a year earlier. On a currency-adjusted basis, international sales climbed 29%.Regional momentum was broad based. EMEA sales rose 27.2%, while Asia-Pacific sales increased 35.7%. Latin America, including Mexico and the Caribbean, advanced 56.1%. Brazil stood out with an 82% sales increase in dollars, while China and India posted growth of 62.5% and 84%, respectively. Adjusted gross profit, as a percentage of net sales, was 56.3% in the second quarter of 2026, up 10 basis points (bps) from a year ago. Pricing actions and favorable product sales mix supported profitability, partly offset by higher aluminum can costs, geographic sales mix and increased freight-in expenses.Adjusted operating expenses were $662.7 million, or 26.5% of adjusted net sales excluding Alcohol Brands, compared with $505.6 million, or 24.4%, in the year-ago quarter. Distribution expenses rose 44.9% to $118.8 million, while selling expenses increased 36.7% to $269.2 million and general and administrative expenses advanced 9.5% to $291.2 million. Monster Beverage exited second-quarter 2025 with cash and cash equivalents of $2.19 billion and total stockholders' equity of $9.3 billion. Accounts receivable stood at $1.90 billion, while inventories totaled $867.7 million.The company did not repurchase shares during the quarter. As of Aug. 5, roughly $900 million remained under its existing repurchase authorization. Monster Beverage also declared a two-for-one stock split, with split-adjusted trading expected to begin Aug. 11, 2026. Management has initiated discussions with U.S. partners and customers regarding selective pricing actions expected to take effect in the fourth quarter. In EMEA, Monster Beverage has already implemented aggregate low-single-digit pricing in certain markets and is considering additional increases elsewhere.Innovation remains central to growth. Management said staggered 2026 launches improved execution, while limited-time offerings performed well. The company also continues to expand zero-sugar products, food-service distribution and affordable energy brands in international markets. July sales, excluding Alcohol Brands, were estimated to be 14.3% above the prior-year period, providing an early read on continued sales momentum.This Zacks Rank #3 (Hold) company shares have gained 16.3% in the past six months compared with the industry’s 2.3% growth. Image Source: Zacks Investment Research The Vita Coco Company Inc. COCO is the leading coconut water brand in the United States, leveraging its strong brand equity, expanding global presence and asset-light business model to capitalize on the growing demand for healthier hydration beverages. COCO currently sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.The consensus estimate for Vita Coco’s current fiscal-year sales and earnings implies growth of 31.6% and 64.7%, respectively, from the year-ago reported figures. COCO has delivered a trailing four-quarter earnings surprise of 21.9%, on average.The Coca-Cola Company KO is a leading beverage company with a portfolio of 32 billion-dollar brands spanning sparkling beverages, water, sports drinks, dairy and value-added beverages. KO currently carries a Zacks Rank #2 (Buy).The Zacks Consensus Estimate for Coca-Cola’s current fiscal-year sales and earnings implies growth of 3.6% and 9.7%, respectively, from the year-ago reported figures. Coca-Cola delivered a trailing four-quarter earnings surprise of 4.6%, on average.Primo Brands Corporation PRMB is a leading North American branded beverage company focused on healthy hydration. It currently has a Zacks Rank #2.The Zacks Consensus Estimate for Primo Brands’ current fiscal-year sales indicates growth of 1.6% from the prior year’s reported levels. PRMB delivered a trailing four-quarter earnings surprise of 7.7%, on average. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Monster Beverage Corporation (MNST) : Free Stock Analysis Report CocaCola Company (The) (KO) : Free Stock Analysis Report Vita Coco Company, Inc. (COCO) : Free Stock Analysis Report Primo Brands Corporation (PRMB) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Monster Beverage (MNST) came out with quarterly earnings of $0.6 per share, beating the Zacks Consensus Estimate of $0.59 per share. This compares to earnings of $0.52 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +1.70%. A quarter ago, it was expected that this energy drink maker would post earnings of $0.53 per share when it actually produced earnings of $0.58, delivering a surprise of +9.43%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Monster Beverage, which belongs to the Zacks Beverages - Soft drinks industry, posted revenues of $2.54 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 4.97%. This compares to year-ago revenues of $2.11 billion. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Monster Beverage shares have added about 23.2% since the beginning of the year versus the S&P 500's gain of 12.8%. While Monster Beverage has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Monster Beverage was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.60 on $2.43 billion in revenues for the coming quarter and $2.31 on $9.52 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Beverages - Soft drinks is currently in the top 32% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the broader Zacks Consumer Staples sector, Alico (ALCO), is yet to report results for the quarter ended June 2026. The results are expected to be released on August 10. This agribusiness and land management company is expected to post quarterly loss of $0.73 per share in its upcoming report, which represents a year-over-year change of +69.5%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Alico's revenues are expected to be $2.6 million, down 69% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Monster Beverage Corporation (MNST) : Free Stock Analysis Report Alico, Inc. (ALCO) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

2026 Second Quarter Highlights Net Sales rise 20.2 percent to $2.54 billion Net Income increases 19.6 percent to $584.5 million (15.7 percent to $590.5 million on a non-GAAP adjusted basis)1 Net Income Per Diluted Share increases 19.0 percent to $0.59 per share (15.2 percent to $0.60 per share on a non-GAAP adjusted basis) 1The tables at the end of this press release provide a reconciliation of non-GAAP financial measures to the Company’s results, as reported under GAAP. (See “Reconciliation of GAAP and Non-GAAP Information” below). CORONA, Calif., Aug. 06, 2026 (GLOBE NEWSWIRE) -- Monster Beverage Corporation (NASDAQ: MNST) today reported financial results for the three- and six-months ended June 30, 2026. Net sales for the 2026 second quarter increased 20.2 percent to $2.54 billion, from $2.11 billion in the same period last year. Net changes in foreign currency exchange rates had a favorable impact on net sales for the 2026 second quarter of $48.5 million. Net sales on a foreign currency adjusted basis (non-GAAP) increased 17.9 percent in the 2026 second quarter. Net sales, excluding the Alcohol Brands segment (non-GAAP), increased 20.8 percent in the 2026 second quarter. Net sales, excluding the Alcohol Brands segment, on a foreign currency adjusted basis (non-GAAP), increased 18.5 percent in the 2026 second quarter. Net sales for the Company’s Monster Energy® Drinks segment, which primarily includes the Company’s Monster Energy® drinks, Reign Total Body Fuel® high performance energy drinks, Bang Energy® drinks, StormTM and Reign Storm® total wellness energy drinks and FLRTTM total wellness energy drinks, increased 21.6 percent to $2.36 billion for the 2026 second quarter, from $1.94 billion for the 2025 second quarter. Net changes in foreign currency exchange rates had a favorable impact on net sales for the Monster Energy® Drinks segment of approximately $45.3 million for the 2026 second quarter. Net sales on a foreign currency adjusted basis (non-GAAP) for the Monster Energy® Drinks segment increased 19.3 percent in the 2026 second quarter. Net sales for the Company’s Strategic Brands segment, which primarily includes the various energy drink brands acquired from The Coca-Cola Company, as well as the Company’s affordable energy brands, Predator® and Fury®, increased 10.6 percent to $143.7 million for the 2026 second quarter, from $129.9 million in the 2025 second quarter. Net changes in foreign currency exchange rates had a favorable impact on net sales for the Strategic Brands segment of approximately $3.3 million for the 2026 second quarter. Net sales on a foreign currency adjusted basis (non-GAAP) for the Strategic Brands segment increased 8.1 percent in the 2026 second quarter. Net sales for the Alcohol Brands segment, which is comprised of various craft beers, flavored malt beverages and hard seltzers, decreased 15.2 percent to $32.2 million for the 2026 second quarter, from $38.0 million in the 2025 second quarter. Net sales for the Company’s Other segment, which primarily includes certain products of American Fruits and Flavors, LLC, a wholly owned subsidiary of the Company, sold to independent third-party customers, decreased 15.3 percent to $5.4 million for the 2026 second quarter, from $6.4 million in the 2025 second quarter. Net sales to customers outside the United States increased 34.6 percent to $1.16 billion in the 2026 second quarter, from $864.2 million in the 2025 second quarter, representing approximately 46 percent and 41 percent of total reported net sales for the 2026 and 2025 second quarters, respectively. Net sales to customers outside the United States, on a foreign currency adjusted basis (non-GAAP), increased 29.0 percent to $1.11 billion in the 2026 second quarter. Gross profit as a percentage of net sales for the 2026 second quarter was 55.9 percent, compared with 55.7 percent in the 2025 second quarter. The increase in gross profit as a percentage of net sales for the 2026 second quarter was primarily the result of pricing actions and product sales mix, partially offset by increased aluminum can costs, geographical sales mix and increased freight-in costs. Adjusted gross profit (non-GAAP) as a percentage of net sales, excluding the Alcohol Brands segment, for the 2026 second quarter was 56.3 percent, compared with 56.2 percent in the 2025 second quarter. Distribution expenses for the 2026 second quarter were $118.8 million, or 4.7 percent of net sales, compared with $82.0 million, or 3.9 percent of net sales, in the 2025 second quarter. Selling expenses for the 2026 second quarter were $269.2 million, or 10.6 percent of net sales, compared with $196.9 million, or 9.3 percent of net sales, in the 2025 second quarter. The increase in selling expenses for the 2026 second quarter was primarily due to increased social, digital, media and other marketing expenses, including sponsorships and endorsements, in order to reach a broader consumer audience and increase household penetration. General and administrative expenses for the 2026 second quarter were $291.2 million, or 11.5 percent of net sales, compared with $265.9 million, or 12.6 percent of net sales, for the 2025 second quarter. Stock-based compensation was $35.7 million for the 2026 second quarter, compared with $33.2 million in the 2025 second quarter. Operating expenses for the 2026 second quarter were $679.2 million, compared with $544.8 million in the 2025 second quarter. Adjusted operating expenses (non-GAAP) for the 2026 second quarter were $662.7 million, compared with $505.6 million in the 2025 second quarter. Operating expenses as a percentage of net sales for the 2026 second quarter were 26.8 percent, compared with 25.8 percent in the 2025 second quarter. Adjusted operating expenses (non-GAAP) as a percentage of net sales, less the Alcohol Brands segment, were 26.5 percent and 24.4 percent for the 2026 and 2025 second quarters, respectively. Operating income for the 2026 second quarter increased 17.2 percent to $740.4 million, from $631.6 million in the 2025 second quarter. Adjusted operating income (non-GAAP) for the 2026 second quarter increased 13.3 percent to $748.1 million, from $660.1 million in the 2025 second quarter. The effective tax rate for the 2026 second quarter was 23.9 percent, compared with 24.4 percent in the 2025 second quarter. Net income for the 2026 second quarter increased 19.6 percent to $584.5 million, from $488.8 million in the 2025 second quarter. Adjusted net income (non-GAAP) for the 2026 second quarter increased 15.7 percent to $590.5 million, from $510.4 million in the 2025 second quarter. Net income per diluted share for the 2026 second quarter increased 19.0 percent to $0.59, from $0.50 in the 2025 second quarter. Adjusted net income per diluted share (non-GAAP) for the 2026 second quarter increased 15.2 percent to $0.60, from $0.52 in the second quarter of 2025. Hilton H. Schlosberg, Chief Executive Officer, said, “We delivered a strong 2026 second quarter, with net sales increasing 20.2 percent and net income per diluted share increasing 19.0 percent. “Our international operations continued their meaningful contribution to revenue growth, with net sales to customers outside the United States increasing 34.6 percent in the 2026 second quarter to approximately 46 percent of total net sales. “The energy drink category continues to attract new consumers, expand usage occasions and increase household penetration. Our 2026 marketing strategy includes increased marketing investments across a variety of new platforms and partnerships, including social, digital and media, to support both existing product offerings and new product launches, as well as reach a broadening consumer base for the Company. “We remain focused on the growth of our existing core offerings as well as the continued introduction of product innovations, which remain central to our long-term growth strategy,” Mr. Schlosberg added. 2026 Six-Months Results Net sales for the six-months ended June 30, 2026 increased 23.3 percent to $4.89 billion, from $3.97 billion in the comparable period last year. Net changes in foreign currency exchange rates had a favorable impact of $137.8 million on net sales for the six-months ended June 30, 2026. Net sales on a foreign currency adjusted basis (non-GAAP) increased 19.8 percent in the six-months ended June 30, 2026. Net sales, excluding the Alcohol Brands segment, on a foreign currency adjusted basis (non-GAAP), increased 20.4 percent in the six-months ended June 30, 2026. Gross profit as a percentage of net sales for the six-months ended June 30, 2026 was 55.5 percent, compared with 56.1 percent in the comparable period last year. Operating expenses for the six-months ended June 30, 2026 were $1.24 billion, compared with $1.02 billion in the comparable period last year. Operating income for the six-months ended June 30, 2026 increased to $1.47 billion, from $1.20 billion in the comparable period last year. The effective tax rate for the six-months ended June 30, 2026 was 24.0 percent, compared with 23.9 percent in the comparable period last year. Net income for the six-months ended June 30, 2026 increased 23.9 percent to $1.15 billion, from $931.8 million in the comparable period last year. Net income per diluted share for the six-months ended June 30, 2026 was $1.17, compared with $0.95 in the comparable period last year. Share Repurchase Program During the 2026 second quarter, no shares of the Company’s common stock were repurchased. As of August 5, 2026, approximately $900.0 million remained available for repurchase under the previously authorized repurchase programs. Stock Split As previously announced, the Company’s Board of Directors approved and declared a two-for-one stock split of its common stock to be effected in the form of a 100% stock dividend. The stock dividend will be distributed after close of trading on August 10, 2026. The Company anticipates its common stock to begin trading at the split-adjusted price on August 11, 2026. Investor Conference Call The Company will host an investor conference call today, August 6, 2026, at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time). The conference call will be open to all interested investors through a live audio web broadcast via the internet at www.monsterbevcorp.com in the “Events & Presentations” section. For those who are not able to listen to the live broadcast, the call will be archived for approximately one year on the website. Monster Beverage Corporation Based in Corona, California, Monster Beverage Corporation is a holding company and conducts no operating business except through its consolidated subsidiaries. The Company’s subsidiaries develop and market energy drinks, including Monster Energy® drinks, Monster Energy Ultra® energy drinks, Juice Monster® and Punch Monster® Energy + Juice energy drinks, Java Monster® and Monster Killer Brew® non-carbonated coffee + energy drinks, Rehab® Monster® non-carbonated energy drinks, Monster Energy® Nitro energy drinks, Reign Total Body Fuel® high performance energy drinks, StormTM and Reign Storm® total wellness energy drinks, NOS® energy drinks, Full Throttle® energy drinks, Bang Energy® drinks, FLRT™ total wellness energy drinks, BPM® energy drinks, BU® energy drinks, Burn® energy drinks, Live+® energy drinks, Mother® energy drinks, Nalu® energy drinks, Play® and Power Play® (stylized) energy drinks, Relentless® energy drinks, Samurai® energy drinks, Ultra Energy® drinks, Predator® energy drinks and Fury® energy drinks. The Company’s subsidiaries also develop and market craft beers, flavored malt beverages and hard seltzers under a number of brands, including Jai Alai® IPA, Dale’s Pale Ale®, Dallas Blonde®, Wild Basin® hard seltzers, The BeastTM, Blind Lemon® and Blinder Lemon™. For more information visit www.monsterbevcorp.com. Caution Concerning Forward-Looking Statements Certain statements made in this announcement may constitute “forward-looking statements” within the meaning of the U.S. federal securities laws, as amended, regarding the expectations of management with respect to our future operating results and other future events including revenues and profitability. The Company cautions that these statements are based on management’s current knowledge and expectations and are subject to certain risks and uncertainties, many of which are outside of the control of the Company, that could cause actual results and events to differ materially from the statements made herein. Such risks and uncertainties include, but are not limited to, the following: the timing and completion of the stock split; our ability to sustain and/or surpass the current level of sales of our products, to adapt to changing consumer preferences, and to effectively respond to competitive products and pricing pressures; our ability to implement our growth strategy, including expanding our business in existing and new sectors and achieving profitability within our Alcohol Brands segment; our ability to adapt to the changing retail landscape with the rapid growth in e-commerce retailers and e-commerce websites; our ability to absorb, reduce or pass on to our bottlers/distributors increases in costs and expenses, including, but not limited to, increases to the cost of aluminum and other raw materials, the Midwest Premium, and freight costs; the impact of the current U.S. presidential administration’s policies on our energy drinks due to concerns about sugar-sweetened beverages, particular ingredients, such as food dyes, and the “generally recognized as safe” (GRAS) process; the impact of proposed or adopted domestic and/or foreign legislation to limit or restrict the sale of energy drinks (including the prohibition of the sale of energy drinks to certain demographics, at certain establishments, in certain container sizes or pursuant to certain governmental programs, such as the Supplemental Nutrition Assistance Program (SNAP)); the impact of changes in U.S. trade policies, including the imposition of additional tariffs; the impact of adverse changes in our costs, supply chain, inflation or consumer demand for our products; the imposition of new and/or increased excise sales and/or other taxes on our products; our extensive commercial arrangements with The Coca-Cola Company (TCCC) and, as a result, our future performance’s substantial dependence on the success of our relationship with TCCC; the effects of unilateral decisions by bottlers/distributors and/or retailers on our business, including their distribution and placement of our products, their consolidation, their discontinuation, or restriction of the range of, all or any of our products that they carry, their limitations on the sale or sizes of our products, and/or their allocation of less resources to the sale of our products; changes in the price and/or availability of raw materials and other supply chain issues, such as the availability of products, suitable production facilities and/or co-packing arrangements; possible recalls of our products and/or the consequences and costs of defective production; disruption to our manufacturing facilities and operations related to climate, labor, production difficulties, capacity limitations, regulations or other causes; disruption to and/or lack of effectiveness of our information technology systems, including internal and external cybersecurity threats and breaches; adverse publicity surrounding obesity, alcohol consumption and other health concerns related to our products, product safety and quality; liabilities resulting from legal or regulatory proceedings, government investigations, and/or injunctions; the inherent operational risks, including the abuse or misuse of our products presented by the alcoholic beverage industry and/or related claims that may not be adequately covered by insurance or may lead to litigation; the current uncertainty and volatility in the national and global economy and changes in demand due to such economic conditions, including a slowdown in consumer spending generally; and the impact of military and geopolitical conflicts, including supply chain disruptions, volatility in commodity prices, increased economic uncertainty and escalating geopolitical tensions. For a more detailed discussion of these and other risks that could affect our operating results, see the Company’s reports filed with the Securities and Exchange Commission, including our annual report on Form 10-K for the year ended December 31, 2025 and our subsequently filed quarterly report. The Company’s actual results could differ materially from those contained in the forward-looking statements. The Company assumes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. (tables below) MONSTER BEVERAGE CORPORATION AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF INCOME AND OTHER INFORMATIONFOR THE THREE- AND SIX-MONTHS ENDED JUNE 30, 2026 AND 2025(In Thousands, Except Per Share Amounts) (Unaudited) ¹Includes $10.0 million for both the three-months ended June 30, 2026 and 2025, related to the recognition of deferred revenue. Includes $19.9 million for both the six-months ended June 30, 2026 and 2025, related to the recognition of deferred revenue. 2Excludes Alcohol Brands segment and Other segment net sales. MONSTER BEVERAGE CORPORATION AND SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE SHEETSAS OF JUNE 30, 2026 AND DECEMBER 31, 2025(In Thousands, Except Par Value) (Unaudited) Reconciliation of GAAP and Non-GAAP Information ($ in Thousands, Except Per Share Amounts, unaudited) The Company believes the following non-GAAP items are useful to investors in evaluating the Company’s ongoing operating and financial results. The non-GAAP items should be considered in addition to, and not in lieu of, U.S. GAAP financial measures. The non-GAAP financial measures do not represent a comprehensive basis of accounting. Therefore, our non-GAAP financial measures may not be comparable to similarly titled measures reported by other companies. Adjustments in this table are net of tax. Adjustments in this table are net of tax.