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Hansen Has a Great Quarter, but Not to Wall Street

May 9th, 2008 @ 12:41 pm

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Tags: Hansen Natural Corp., Stock, Analyst, Investor, Wall, Hansen, Construction, Investment, Financial Accounting, Finance

After plowing through news reports after a company reports earnings, it’s often refreshing to take a look at the Motley Fool. While wire services, newspapers and most stock-oriented blogs tend to focus on whether or not a company has “met Wall Street expectations” for the latest quarter, the Fool — a Web site for investors — looks at business fundamentals, management, and all the other factors that should be considered by anyone who is not simply trying to make a quick buck from the attention-deficited whims of Wall Street or the often irrelevant “expectations” of stock analysts.

That the Fool is for “investors” is an important distinction. Traders aren’t investors, and neither are stock analysts. So, for example, while most news accounts of beverage-maker Hansen Natural’s latest earnings report focused on the fact that it didn’t please analysts and sent the stock into a nosedive, the Fool’s latest article on Hansen noted that the company has solid management and sound fundamentals. “Hansen has turned around negative margin and growth trends,” the site noted, “thanks to highly cost-efficient distribution agreements with Anheuser-Busch in the U.S., Cadbury in Latin America, and Pepsi in the Canadian market.”

It’s worth noting that this Fool post came before Hansen released its earnings, which were, by any rational assessment, stellar. Profits soared 43 percent. Hansen’s market share for its Monster energy drinks continued to grow. It was a great quarter.

But you wouldn’t know it was a great quarter if you relied on most mainstream news accounts, which all highlighted the fact that profits fell short of analysts’ expectations by a few pennies per share, and you wouldn’t know it by paying attention to Wall Street traders, who knocked about 20 percent off the value of Hansen’s stock in the two days since it released its results.

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Dan Mitchell

Dan Mitchell has spent the past 20 years writing and editing for newspapers, magazines, and Web publications. Currently, he writes the What's Online column for the Saturday business section of the New York Times. He has also written for the Chicago Tribune, the Minneapolis Star-Tribune, National Public Radio, Business 2.0, and Wired. more »

AboutFood Industry

BNET Food provides daily industry news coverage and insights for managers and executives, focusing on the major companies in the food and beverage sector, from manufacturers to retailers. In addition to detailed company profiles, we bring you critical analysis on new alliances and partnerships, new products, mergers and acquisitions, labor and cost management, investments and deal flow, and a host of other important business issues.

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