By Yasin Ebrahim
Investing.com - Monster Beverage (NASDAQ:MNST) reported Thursday mixed first-quarter results as earnings fell short of estimates following supply chain issues that the beverage company warned could continue.
Monster Beverage shares lost 7% in after-hours trade following the report.
Monster Beverage announced earnings per share of $0.59 on revenue of $1.24B. Analysts polled by Investing.com anticipated EPS of $0.6125 on revenue of $1.22B.
Gross margin slipped to 57.5% from 60% in the quarter as rising transportation cost weighed.
"[T]o meet consumer demand, we experienced freight inefficiencies in the United States and in Europe in the quarter, which resulted in increased costs of sales as well as increased operating expenses," the company said.
Looking ahead, the company warned that supply chain issues may continue.
"The company has taken steps to source additional quantities of aluminum cans from South America and Asia, however, logistical issues, including ocean freight and port of entry congestion could delay such supply."
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