Hansen Natural Corporation ( Nasdaq: ) is scheduled to report results for the second quarter of fiscal 2009 on Thursday, August 6, 2009.
Hansen Natural Corporation (Hansen) develops, markets, and distributes wide assortment of beverage products. Some of them include natural sodas, fruit juices and juice drinks, energy drinks and energy sports drinks, fruit juice smoothies and functional drinks. The company primarily operates in the US.
In the first quarter, the company reported earnings per share of $0.44 better than the analysts’ consensus estimate of $0.366 by 20.22%. The company’s share price rose $5.39 to $43.45 two days after the earnings announcement. Gross sales for the 2009 first quarter increased 14.3 percent to $278.9 million from $244.0 million in the same period last year. Net sales for the first three months of 2009 increased 15.1 percent to $244.2 million from $212.2 million in the same period last year. Both gross and net sales for the 2008 first quarter were impacted by purchases made by customers in the 2007 fourth quarter in advance of the price increase effective January 1, 2008, for Monster Energy(r) brand energy drinks in 16-ounce cans and for the Java Monster(tm) line of non-carbonated dairy based coffee drinks.
Analysts’ estimate for the second quarter ranges from a low of $0.56 to a high of $0.63, with a consensus of $0.601. For the fiscal quarter ending June 2009, the consensus EPS forecast has decreased over the past week from $0.609 to $0.601 (-1.31%) and decreased over the past month from $0.609 to $0.601 (-1.31%). Of the 7 analysts making quarterly forecasts, none raised and 1 lowered their forecast.
The decrease in the consensus earnings is attributable to decline in US sales. However, the launch of certain new products in the second quarter, including Monster(r) Import(tm) in resealable 18.6-ounce aluminum cans and Hammer X-Presso Monster(tm) in 6.8-ounce aluminum cans, is expected to have held the sales run rate in the second quarter. Moreover, the new distribution arrangements with CCE in France, Belgium, Holland, Luxembourg and Monaco have been progressing well and the results achieved in Continental Europe should up the sales. Consequently, the company’s sales and earnings are expected to be higher than in the first quarter.
For the fiscal year ending December 2009, the consensus EPS forecast has decreased over the past week from $2.256 to $2.233 (-1.02%) and decreased over the past month from $2.256 to $2.233 (-1.02%). Of the 7 analysts making yearly forecasts, none raised and 2 lowered their forecast. Currently the stock is trading at $31.50 (12.6x 2010 EPS), compared to the 52 week range of $20.52-$44.02. Going forward, the stock is expected to inch up to $35 to $38 range soon.
