The recent stabilization in the housing market could signal that the worst is over for the consumer staples industry.
Hansen Natural Corporation (HANS), one of the global leaders in energy drinks category, is scheduled to report its fiscal third quarter 2009 financial results on Thursday, November 5, 2009. In the previous quarter, the company disappointed investors by reporting slightly lower earnings compared to the market's consensus.
Hansen's gross sales for the 2009 second quarter increased 6.7% to $345.8 million from $324.1 million in the same period last year. Net sales increased 6.4% to $300.2 million from $282.2 million a year ago. Gross profit for the 2009 second quarter was 53.9%, compared with 51.8% for the comparable 2008 second quarter. Operating expenses for the 2009 second quarter increased to $69.0 million from $68.0 million in the same quarter last year.
Analysts' estimates for the quarter ending September 2009 (Q3) range from a low of $0.63 to a high of $0.64, with a consensus of $0.634. For the fiscal quarter ending September 2009, the consensus EPS forecast has increased over the past week from $0.631 to $0.634 (0.48%) and increased over the past month from $0.629 to $0.634 (0.79%). Of the 7 analysts making quarterly forecasts, 2 raised and none lowered their forecast. In the last six years, the company's Q3 revenues trended up over Q2 revenues.
Upward revision in the Analysts' consensus earnings estimate is attributable to increase in market share in the US, and Canada. The transition to certain Coca-Cola bottlers and new Anheuser-Busch distributors at the end of 2008 is paying dividends as the company's market share nationally in its main channels, namely convenience and grocery, has grown and is now higher than it was prior to the transition. In the third quarter, the company launched Nitrous(tm) Monster Energy(r) drinks in resalable 12-ounce sleek aluminum cans in three variants: Super Dry, Anti Gravity and Killer-B. These drinks are doing well for the company. However, the company's sales of Java Monster(tm) are down primarily due to Starbucks entering the market in the middle of the second quarter in 2008.
For the fiscal year ending December 2009, the consensus EPS forecast has increased over the past week from $2.227 to $2.233 (0.27%) and increased over the past month from $2.224 to $2.233 (0.40%). Of the 7 analysts making yearly forecasts, 2 raised and none lowered their forecast.
The company's stock closed Tuesday at $36.64, compared to the 52 week range of $22.44 and $44.02. The stock seems to be trading at appropriate levels.
