Monster Beverage Corp. MNSTshares dove 6% in after-hours trading Tuesday, after the energy-drink company reported holiday earnings and sales lower than Wall Street’s targets and executives announced plans for price increases and a stock split. Monster reported fourth-quarter earnings of $301.7 million, or 57 cents a share, down from 60 cents a share a year ago, while sales increased to $1.51 billion from $1.43 billion. Analysts on average expected earnings of 63 cents a share on sales of $1.6 billion. Co-Chief Executive Hilton Schlosberg cited a strong dollar and increasing costs as a reason for reduced profit, and said prices would increase again in 2023. “We believe that some of the increased costs that we have experienced in 2022 are likely to be transitory, although cost inflation, including increases in energy particularly in EMEA, ingredient and other input costs, as well as co-packing fees, remain challenging,” he said in a statement. “Certain price increases are being implemented on a phased approach during the first half of 2023, some in addition to price increases or pricing actions already taken in 2022.” Monster plans a 2-for-1 stock split for shareholders as of March 13, with extra shares to be distributed after the close of markets on March 27. Monster stock closed with a 0.6% decline at $101.76, and have gained 20.6% in the past 12 months, as the S&P 500 index SPXhas declined 9%.
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