Monster Beverage met earnings views late Wednesday for 30 cents a share, up 30% vs. a year earlier. Sales jumped 17% to $753.8 million, well above forecasts for $721 million. Monster shares gapped up 12.8% to 47.37 on the stock market today, vaulting over its 50-day moving average and breaking a downtrend going back to early August. Intraday, Monster rose as high as 48.94, briefly retaking its 200-day line.
Coca-Cola (KO) rose 0.7%. Coca-Cola owns a big stake in Monster Beverage.
IBD’S TAKE: Monster Beverage is one to put on your watch list. It’s having a strong day, breaking a long downtrend. See if it can form the right side of a base and break out from a proper buy point.
Meanwhile, AB InBev, which makes more than a quarter of the world’s beer after acquiring SABMiller last year, on Thurdsay reported its first annual decline in EBITDA (earnings before interest, taxes, depreciation and amortization) since Belgium’s Interbrew merged with Brazil’s AmBev in 2004.
Beer sales fell more than expected in recession-hit Brazil, its No. 2 market after the U.S. The weaker real also hurt.
Q4 comparable core profit (EBITDA) fell 3.6% excluding currency swings to $5.25 billion, below views for $5.58 billion. The maker of Budweiser, Stella Artois and many other beers, said core profit rose 6.4% excluding Brazil.
AB InBev shares fell 3.7% to 105.85, closing just below its 50-day line. Shares of its AmBev(ABEV) unit skidded 5.7%, gapping below its 200-day line.