(MENAFN- ProactiveInvestors) Monster Beverage (NASDAQ:MNST) a maker of energy drinks and teas reported earnings and revenue that lagged behind forecasts in the first quarter hurt by $206 million in termination payments as it transfers distribution to Coca-Cola. Shares stumbled.
Net income tumbled to $4.4 million or $0.03 per share in the January-to-March quarter from $95.3 million or $0.55 per share a year earlier the Corona California-based company said in a statement late yesterday.
Excluding items adjusted earnings were $0.62 per share below analysts’ average estimate of $0.68 per share according to Reuters.
The company said results were hurt by $206 million of termination obligations as a result of distributor terminations.
First-quarter revenue rose to $626.8 million from $536.1 million year-over-year.
Adjusted revenue was $587 million missing the Wall Street consensus of $601.2 million.
Monster’s revenue outside the U.S. dipped to $113 million from $115.8 million in the year-earlier quarter. Monster said the strengthening dollar had a negative impact of $12 million on foreign sales.
Shares declined 10 percent to $128.98 at 2:43 p.m. in New York paring gains this year to 18 percent.
In August 2014 Monster and Coca-Cola agreed to a long-term strategic partnership to accelerate growth in the global energy drink category. The deal is expected to close in early June.
Coke said last August it would pay $2.15 billion for a 16.7 percent stake in Monster as part of an asset swap and become Monster’s preferred distributor.
Monster said it has transferred about 84 percent of targeted distribution rights in the U.S. to Coke which previously shared distribution with brewer NV.
Monster Beverage develops and sells alternate beverage category drinks. Its products include carbonated energy drinks and non-carbonated dairy based coffee plus energy drinks.
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