NEW YORK (TheStreet) -- Shares of Monster Beverage (MNST) were falling 5.83% to $132.03 on heavy trading volume late Friday morning after the company reported weaker-than-anticipated results for the 2016 third quarter.
After yesterday's closing bell, the Corona, CA-based energy drinks maker reported earnings of 99 cents per diluted share, below analysts' estimates of $1.12 per share.
Revenue for the quarter was $788 million, which fell short of Wall Street's projections of $820 million.
Credit Suisse cut its price target on the stock to $175 from $187, but maintained an "outperform" rating after the quarterly report.
The firm said the results were "disappointing," but Credit Suisse's thesis that growth will accelerate in fiscal 2017 and 2018 remains intact.
"Sales growth missed consensus by about half, growing only 4% (+2% in the US; +12% international) because of a difficult year-ago comparison from a pull-forward of sales that pressured the growth rate a slower US category growth (+5% vs +7% previously) and some production issues with the Java Monster line that continued into October," the firm wrote in a note today.
More than 4.03 million of the company's shares changed hands so far today vs. its average 30-day volume of 721,562 shares.
Separately, TheStreet Ratings Team has a "Buy" rating with a score of B+ on the stock.
The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins, good cash flow from operations and notable return on equity.
The team believes its strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.
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