Hansen shares rise on Q3 sales beat

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(Global Markets) - Shares of Hansen Natural Corp (HANS.O) rose as much as 6 percent, a day after the company posted quarterly sales that beat analysts' estimates, driven by solid growth of its Monster energy drink brand.

Sales in October were about 31 percent higher than last year, the company said on a conference call with analysts.

Longbow Research analyst Alton Stump said October sales growth accelerated from reported third-quarter revenues, implying fourth-quarter revenues will beat estimates, driving up the stock today.

On Thursday, the company had reported a lower-than-expected quarterly profit sending shares down as much as 5 percent after the bell.

"While EPS came in a penny below the Street, the three focal points to the story -- sales growth, international expansion, gross margin -- didn't skip a beat," SunTrust Robinson Humphrey analyst William Chappell wrote in a note.

Hansen said it is continuing with its strategy to expand the Monster Energy brand into new international markets, with additional launches in South America, Central and Eastern Europe, and Asia planned for the near future.

Net sales for the third quarter rose 24.4 percent to $474.7 million, above analysts' estimates of $463.7 million.

Stifel Nicolaus analyst Mark Astrachan said demand for Monster Energy remains robust and it continues to anticipate sustained low double-digit sales growth for Hansen over the next 3-5 years.

Shares of the company, which competes with privately held Red Bull, were trading up at $95.50 on Nasdaq on Friday noon.

(Reporting by Chris Jonathan Peters in Bangalore;Editing by Supriya Kurane)