Hansen Shares Tank on Tepid Earnings

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Shares in Hansen Natural Corp. lost more than one-third of their value early Thursday, the stock’s steepest decline in more than 15 years, after the company reported strong earnings that missed Wall Street’s expectations.


Hansen reported third-quarter net income of $46 million (46 cents per share), a 73 percent improvement on the same period a year earlier but below analysts’ expectations of 49 cents per share, according to a Bloomberg survey.


Sales for the Corona-based drink maker also rose 38 percent to $247 million, but also missed expectations of $257 million.


The drink maker reports full earnings later today but investors were concerned that sales in the company’s marquee product, Monster energy drinks, were losing ground to competitor Red Bull.


Shares in Hansen crashed 31 percent Thursday, dropping $17.49 to $39.18. Shares had more than doubled for the year before November. Shares also hit a 52-week low of $24.75 a year ago nearly to the day.

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