Monster Beverage shares fall 4.4%; Q3 sales reach $2.56 billion

Monster Beverage (MNST) shares fell 4.4% at 3:59 p.m. ET, from a $47.83 close.

Monster Beverage (MNST) reported third-quarter net sales of $2.56 billion, up 16.7% from $2.20 billion a year earlier. Adjusted earnings per share were 30 cents, in line with the consensus estimate of 30 cents.

Revenue was in line with the $2.55 billion consensus.

Here's how the company did:

• Net sales: $2.56 billion vs. $2.20 billion a year earlier
• Adjusted EPS: 30 cents vs. 28 cents a year earlier, in line with 30 cents expected
• Net income per diluted share: 29 cents vs. 27 cents a year earlier

Net sales outside the United States rose 28.1% to $1.20 billion, about 47% of total net sales. Monster Energy drinks sales rose 17.1% to $2.37 billion.

Segment results

Strategic Brands rose 19.8% to $156.4 million. Alcohol Brands fell 13.6% to $28.5 million.

LATAM net sales rose 48.8% in dollars, driven mainly by Brazil.

Margins, costs and capital returns

Gross margin was 54.7%, down from 55.7% a year earlier, as aluminum can costs, sales mix and freight-in costs rose, partly offset by pricing.

Selling expenses rose to $260.1 million, or 10.1% of net sales, on higher marketing. Chief Executive Officer Hilton H. Schlosberg said the company was continuing “increased marketing investments across a variety of new platforms and partnerships.”

A $19.9 million impairment charge tied to Kona, Hawaii land and property reclassified as held for sale. It bought back about 2.3 million shares for about $100.0 million; about $800.0 million remained available as of Nov. 4.