Hansen Natural Shares Drop On Sales Warning

NEW YORK (AP) — Shares of Hansen Natural Corp. slid Friday, a day after the soda and energy drinks company at its annual shareholder meeting said sales were "disappointing" in the last two weeks of May.

Shares of Corona, Calif.-based Hansen Natural dropped $3.85, or 10.5 percent, to $32.70 in afternoon trading. The stock has ranged from $20.52 to $44.02 over the past year.

Companywide sales fell year over year after growing 12 percent growth in April, said Stifel Nicolaus analyst Mark Astrachan in a note to investors Friday.

Sales gains overseas have been slower than anticipated, Astrachan said added.

In the U.S., the maker of Monster Energy drinks is having some problems adjusting to a new drinks distribution system, according to the analysts. There were unstocked shelves and sales declines in key markets, he said.

Furthermore, the Java Monster drinks, which make up 13 percent of the Monster Energy sales, are weighing on results as competition in coffee drinks has increased, said Astrachan.

He cut his earnings estimates for 2009 and 2010 and maintained a "Hold" rating.