New book by Larry Connors Click here Improve your trading - See how
The Corona-based beverage maker reported a profit of $56.5 million for the third quarter, equating to 60 cents per share and up 7.8 percent from the $52.4 million, or 54 cents per share, in the same three months of 2008.
Analysts had predicted a profit of 63 cents a share, and Hansen's stock, which is traded on the Nasdaq Stock Exchange, was down by as much as 9 percent in after-hours trading. Increased promotions, including product exposure at events that included concerts and sports events, were a prominent expenditure.
Sales increased 9 percent in the quarter to $355 million. Hansen's line of energy drinks is still growing faster than the category as a whole and at the expense of some of the lesser competitors in the field, according to industry surveys conducted mostly in September by Nielsen Media Research.
"We are encouraged by the positive sales numbers reported by Nielsen for the five weeks ended September 26," Rodney Sacks, Hansen's chairman and chief executive officer, said in a statement.
Sacks told a conference call of analysts Thursday that Hansen's Monster Energy drinks and industry leader Red Bull picked up market share during the September study, with Monster slightly narrowing the gap with Red Bull. Market share for most of the other brands, continues to slide.
One of the few effects of the weak economy has shown up in softer sales of Monster's 24-ounce containers, which cost more than $3 and may be a problem with people who are out of work or underpaid.
"Generally we continue to see Monster in 16-ounce cans have positive numbers," Sacks told analysts.
The third-quarter report coincided with the first anniversary of Hansen's distribution deal with Coca-Cola, and Sacks said that between that deal and Hansen's deal with Anheuser-Busch, Hansen is with "the two best beverage systems in the United States."
Stanley Makadok, president of Century Management Consultants, a beverage industry analyst, said soft drinks are not considered a luxury even in a recession, and energy drinks are still basically a low-unit item.
"And, if the drink has a functional value, so much the better," Makadok said.
Stifel Nicolaus analyst Mark Astrachan wrote in a recent research report that he is increasing its 2010 earnings estimate from $2.34 per share to $2.45 per share. Astrachan noted the solid performances by Hansen's products, along with its international growth.
Products are being launched in Australia and Brazil in the fourth quarter, Sacks said.
Reach Jack Katzanek at 951 368-9553 or at jkatzanek@PE.com
To see more of The Press-Enterprise or to subscribe to the newspaper, go to http://www.pe.com. Copyright (c) 2009, The Press-Enterprise, Riverside, Calif. Distributed by McClatchy-Tribune Information Services. For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.
More News:
Market Updates |
Stock Alerts |
All Trading News |
Stock Index
About TradingMarkets | Contact | Advertise | Careers | Link to Us | Site Map | Help | Terms & Conditions | Privacy Policy | Return Policy | Testimonials | Feedback
The Connors Group, Inc. ("Company") is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. The analysts and employees or affiliates of Company may hold positions in the stocks, currencies or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities and/or currencies. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company's website, or in its publications, are made as of the date stated and are subject to change without notice.
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company's products (collectively, the "Information") are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company's website are for educational purposes only. Such set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the Information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHER SLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.
The Connors Group, Inc.
10 Exchange Place, Suite 1800
Jersey City, NJ 07302
© Copyright 2009 The Connors Group, Inc.
