Monster Beverage falls 4.4% after quarterly results show margin pressure

What happened

Monster Beverage (MNST) fell 4.4% on November 6, 2026, because the company released third-quarter results that cited rising costs and a geographic sales mix weighing on gross margin. The stock opened 7.9% below the previous close and traded at a closing price of $45.72, with trading volume 1.6 times its 20-day average. The S&P 500 rose 0.3% on the day, while the Consumer Defensive sector median fell 1.1%, leaving the stock 3.3 percentage points worse than the sector median.

How big was the move

The decline was notable for Monster: it equated to 2.6 times a typical daily move for this stock. In the past five years the stock had eight sessions with a decline of at least 4.4%; twenty trading days later the median result was a gain of 1.1%, and five of eight were higher. Over the last five sessions the stock fell 3.4%, contrasting with the S&P 500 over five sessions, which fell 2.7%. Market sensitivity remains low, with a beta of 0.31, meaning the stock tends to move less than the market.

The technical picture

The stock sits 1.2% below its 20-day moving average and 2.3% above its 50-day moving average, while it is 5.7% above its 200-day moving average. The 50-day average is above the 200-day average, a sign of an established uptrend, and the stock has spent 26 consecutive trading days above the 200-day average. The Relative Strength Index (14 days) is 49, in a neutral range, and the stock is 8.9% below the 52-week high. Volatility stands at 27% annualized over 60 days, higher than 76% of its own readings over five years.

Technically the pattern is mixed. Short-term momentum has faltered, with the stock trading below its 20-day average, yet the longer-term trend remains intact given the 50-day position versus the 200-day and the long run above the 200-day average. That combination can make the stock less sensitive to broad-market moves even as quarterly news prompts episodic swings.

Fundamentals and valuation

For the four quarters through September 30, 2026, revenue was $9.58 billion, a gain that grew 20.2% from a year earlier. Diluted earnings per share for that period were $1.11, which rose 24.7% from a year earlier, while gross margin narrowed slightly to 55.3% from 55.8% a year earlier. Operating margin was 28.5%, up from 28.3% a year earlier. Free-cash-flow margin stood at 20.0% and return on invested capital was 21.3%. The balance sheet shows net cash of $2.15 billion, and share count over one year increased by 0.5%.

Valuation multiples remain rich relative to the company’s own history. The stock traded at 41.2 times trailing earnings and 39.5 times expected forward earnings, with a free-cash-flow yield of 2.1%. The price to trailing earnings is higher than 67% of its own readings over the past five years, against a five-year median of 39.7 times earnings. PromtFinance scores rank the company strong on Growth (82), Quality (89), Revisions (83), and Stability (92), while Value is 5, described as Very weak.

That contrast — strong growth and quality metrics against a stretched valuation and weak value score — helps explain why an earnings miss or margin pressure can trigger a notable share-price reaction despite a strong longer-term performance.

Earnings and analyst expectations

Monster reported on November 5, 2026, with earnings per share of $0.30 against $0.30 expected, 0.3% above estimates, and net sales for the quarter of $2.56 billion, up 16.7% year on year. Sales to customers outside the U.S. rose 28.1% and represented 47% of total net sales. Net income for the quarter was $568.4 million. Management said rising costs and a geographic sales mix weighed on gross margin.

The company has a streak of seven consecutive quarters beating estimates and an average surprise over the last four reports of 4.2% above estimates. Typical two-day reactions after recent reports have been modest, with a recent typical two-day reaction of fell 0.3%. Analysts cover the stock widely: 44 analysts have a rating, the consensus rating is Buy, and 52% of analysts rate the stock Buy or Strong Buy. The consensus price target is $84.68, which is 85.2% above the closing price on November 6, 2026.

What to watch

• Next report: February 25, 2027
• Last report: November 5, 2026: earnings per share of $0.30 against $0.30 expected, 0.3% above estimates
• Third-quarter net sales: $2.56 billion, up 16.7%, with sales outside the U.S. rising 28.1% and representing 47% of net sales
• Price to trailing earnings: 41.2 times trailing earnings
• Net cash on the balance sheet: $2.15 billion