Shares of energy-drink maker Monster Beverage were jolted 6.5 per cent higher in after-hours trading after it reported better-than-expected quarterly sales.
The company said that revenues for the three-month period ending December 31 were $753.8m, nearly 17 per cent higher than the same period a year earlier and better than the $722m that analysts surveyed by Bloomberg had expected.
It also annoucned that its board of directors have authorised a new $500m share buyback programme.
Profits, however, fell just shy of Wall Street’s expectations, coming in at $172.9m for the quarter, translating to earnings per diluted share of 30 cents, versus estimates of $176.2m on net income, or 30.5 cents a share.
Monster’s chief executive Rodney Sacks said that its quarterly results were impacted by distribution terminations as well as a more muscular US dollar, which has weighed on overseas profits. It is eyeing new international markets in 2017, including a relaunch in India, the company said in a statement.
Over the past 12 months, Monster shares have declined nearly 3 per cent. In 2014, beverage behemoth Coca-Cola paid $2.15bn for a 16.7 per cent stake in Monster Beverage; Mr Sacks said on Wednesday that Monster is making “continued progress”in aligning its distribution systems domestically and internationally with the soda giant.