.August 8, 2024 3:46 PM

Monster Beverage (NASDAQ:MNST) shares dropped 10% after reporting Q2 earnings below expectations. Adjusted EPS was $0.41, missing the expected $0.45, while revenue was $1.90 billion, lower than the forecasted $2.02 billion, but up 2.5% YoY. The core energy drinks segment saw a 3.3% increase in net sales to $1.74 billion, but unfavorable forex rates impacted overall net sales by $67.7 million. Growth in the energy drink category slowed in the US and other markets due to reduced foot traffic in convenience stores and a shift towards mass and dollar channels, according to Vice Chairman Hilton H. Schlosberg. Despite challenges, Monster Beverage improved gross profit margins to 53.6% from 52.5% YoY, driven by lower freight costs and strategic pricing adjustments.