Valued at a market cap of $48.1 billion, Monster Beverage Corporation (MNST) is a leading energy drink company based in Corona, California. Known for its flagship Monster Energy line, it offers a variety of drinks catering to diverse tastes. The company is set to announce its fiscal Q4 earnings results on Wednesday, Feb. 26.

Ahead of the event, analysts expect MNST to report a profit of $0.40 per share, up 5.3% from $0.38 per share in the year-ago quarter. However, the company has failed to surpass Wall Street’s bottom-line estimates in all of the four past quarters.

For fiscal year 2024, analysts expect MNST to report EPS of $1.62, up 4.5% from $1.55 in fiscal 2023. In fiscal year 2025, its EPS is likely to rise 13.6% year over year to $1.84.

MNST stock declined 13.9% over the past year, substantially underperforming the broader S&P 500 Index's ($SPX) 25% gains and the Consumer Staples Select Sector SPDR Fund’s (XLP) 7.7% returns over the same time frame.

Monster Beverage shares have underperformed the broader market over the past year due to slowing growth in the energy drink sector, particularly in U.S. convenience stores, amid reduced consumer spending. Additionally, the company faced inventory challenges with its alcohol-infused Monster drinks, signaling weaker-than-expected demand.

On Nov. 7, MNST released its Q3 results, and its shares rose marginally. However, its adjusted EPS of $0.40 failed to meet Wall Street expectations of $0.42. The company’s revenue of $1.88 billion missed Wall Street forecasts of $1.91 billion.

The consensus opinion on MNST stock is reasonably upbeat, with an overall “Moderate Buy” rating. Among the 21 analysts covering the stock, 11 advise a “Strong Buy” rating, one suggests a “Moderate Buy” rating, seven recommend a “Hold,” and two suggest a “Strong Sell.” 

MNST's average analyst price target is $55.09, indicating a potential upside of 11.9% from the current price levels.