Hansen Natural Corp (HANS) recently spiked into a new all-time high after reporting an impressive Q1 earnings surprise of 20%. With estimates on the rise and a bullish growth projection, this Zacks #1 rank stock offers a refreshing taste of momentum.
Company Description
Hansen Natural Corp, through its subsidiaries, develops and sells specialty beverages in the United States and internationally. The company was founded in 1985 and has a market cap of $5.85 billion.
Hansen Natural has been charging higher for most of the last year as the global economy continued to improve. But shares got an extra boost in early May after the company reported strong Q1 results that came in ahead of expectations.
First-Quarter Results
Revenue was up 51% from last year to $408 million. Earnings also came in strong at 59 cents, 20% ahead of the Zacks Consensus Estimate, where in spite of a 14% miss last quarter, the company has an average earnings surprise of 3% over the last four quarters.
The strong quarter was driven by a sharp increase in sales in its DSD division, up 54% from last year to $335 million. The company also saw big gains in international revenue, almost doubling from last year to $73 million.
Financial Profile
Moving forward Hansen will continue to benefit from its awesome financial profile, with cash and short-term investments of $594 million against no long-term debt.
Estimates
We saw some decent movement in estimates off the good quarter, with the current year adding 9 cents to $2.84 while the next-year estimate added 12 cents to $3.29, a bullish 16% growth projection.
Valuation
In light of recent gains, HANS forward P/E of 23X is a premium to its peer average of 15X.
12-Month Chart
On the chart, HANS has been trending higher for the last 12 months, with shares jumping into a new all-time high on the good quarter. Take a look below.
Michael Vodicka is the Momentum Stock Strategist for Zacks.com. He is also the Editor in charge of the Zacks Momentum Trader Service.
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