Monster Beverage is set to report earnings Thursday, after the close. Here is a write-up analyzing the stock performance and why there is little upside for the earnings report.
– Industry headwinds, poor peer group performance and product delays point to a troubling quarter ahead.
– CNBC reported on April 19th that U.S. soda sales (including energy drinks) dropped for the 12th consecutive year in the face of consumers choosing healthier options and a slew of sugar taxes. While a declining soft drink market and new tax levies have not directly disrupted Monster’s ability to grow its top line in recent years, it is a long-term negative that will surely impact the company down the road.