NEW YORK (TheStreet) -- Shares of Monster Beverage Corp. (MNST) - Get Report are declining 2.42% to $129.85 on heavy trading volume on Friday afternoon after the company posted its 2015 fourth quarter results.
After yesterday's closing bell, the Corona, CA-based energy drinks maker reported earnings of 67 cents per diluted share, missing analysts' expectations of 82 cents per share.
Revenue rose 6.6% to $645.4 million year-over-year, but did not meet Wall Street's projections of $698.4 million.
Disruptions as the company transitions distribution to the Coca-Cola Co. (KO) and weak foreign currencies weighed down results during the period, Monster noted. Although, it said demand for its products continues to be strong.
"We are clearly having a choppy time just getting everything implemented,'' CEO Rodney Sacks said on an earnings call, referring to its shift to Coke distributors that started last year, the Wall Street Journal noted.
Sacks added that the company expects transition issues to ease during the second half of the year, when it will have finalized contracts with more Coke bottlers abroad.
Monster also announced a stock buyback program of up to $1.75 billion.
About 3.47 million of the company's shares were traded by this afternoon, well above its average volume of 1.8 million shares per day.
Separately, TheStreet Ratings Team has a "Buy" rating with a score of B on the stock.
This is driven by several positive factors, which should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks covered.
The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins, good cash flow from operations and growth in earnings per share.
The team believes its strengths outweigh the fact that the company has had somewhat disappointing return on equity.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: MNST