Mark Astrachan, analyst with Stifel Nicolaus, said in a recently published research note that he’s cutting his 2009 and 2010 earnings estimates for Hansen, and maintained a “hold” rating on the stock. Even though gross sales jumped 12% in April, they’re soft compared to a year ago.
Yet, the company hopes a shake-up in agreements with distributors will position it for better sales, the report says. Hansen has dropped some key distribution agreements but has added others, such as The Coca-Cola Company.
The company recently reported $108m in earnings for 2008, compared with $149m in 2007 – a 27% drop.
Hansen is banking heavily on its Monster Energy brand, though in the US the brand is having some problems adjusting to a new drinks distribution system, according to Astrachan. There were unstocked shelves and sales declines in key markets, he said.
“While the world economic environment continues to impact all of our lives in different ways, we’re optimistic that we will be able to grow our Monster Energy brand,” said CEO Rodney Sacks in the report.
Source: San Bernardino County Sun
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