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Monster Posts Disappointing 3Q Results

Monster Beverage Corp. reported its third-quarter net income increased 7 percent on improved sales of its energy drinks. But the company struggled with added expenses and the quarter's results fell short of market expectations, which sent shares down in after-hours trading.

(AP) — NEWS: Monster Beverage Corp. reported late Thursday that its third-quarter net income increased 7 percent on improved sales of its energy drinks. But the company struggled with added expenses and the quarter's results fell short of market expectations, which sent shares down in after-hours trading.

DETAILS: The company's sales improved both in the U.S. and abroad, but Monster faced $6.5 million in professional service costs, the bulk of was tied to regulatory and legal issues surrounding concerns about the safety of its products.

NUMBERS: Net income increased 7 percent to $92.2 million, or 53 cents per share, for the quarter that ended Sept. 30. That is up from $86.1 million, or 47 cents per share, last year. Revenue increased 9 percent to $590.4 million. Analysts polled by FactSet were anticipating earnings of 57 cents per share on revenue of $602 million.

FUTURE: Monster continues to stand by the safety of its drinks and has launched several new products. The company said that it plans to introduce its brands in new international markets soon, noting that it has received regulatory approval to begin the sale of its drinks in India in October.

STOCK: Shares of the Corona, Calif., company fell more than 5 percent to $54.10 after hours. Its stock price fell 72 cents to close regular trading at $57.11.