Hansen Posts Strong Q2, Cleared by SEC

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Hansen Natural Corp. reported double-digit jumps in profit and sales for its third-quarter and also said that the Securities and Exchange Commission ended its informal stock options probe and will take no further action. The company’s stock surged after the announcement.


Hansen reported second-quarter net income of $38 million (39 cents per share), a 36 percent jump from $28 million (28 cents) from the same period a year earlier, beating Wall Street’s expectation of 37 cents, according to Thomson Financial.


Sales for the Corona-based soft drink and fruit juice maker also surged 57 percent to $245 million on strong sales of its popular Monster energy drink, the company said. This also beat analysts’ expectations of $218 million.


Separately, the SEC said that it has completed its investigation into the company’s stock options issuing practices and said it “does not intend to recommend any enforcement action.”


Hansen has been under investigation for about a year and reported in March that it had found several “unintentional accounting errors” that caused non-cash compensation and employment tax expenses to be understated by about $1.3 million. However the company said that it found no “willful or intentional misconduct” by any company executives.


The drink maker had delayed filing its first-quarter earnings for 2007, as well as its fourth quarter and annual report for 2006, citing the ongoing investigation. Hansen became current in June after being threatened with delisting by Nasdaq for the delays.


More than 200 companies have been mentioned across the country in options probes, about a dozen or so of them are based in Southern California.


Shares in Hansen gained $6.67, or 16 percent to $48.25 Wednesday in afternoon trading on the Nasdaq.

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