(Reuters) -Monster Beverage missed Wall Street expectations for fourth-quarter revenue on Thursday, as budget-conscious consumers turned wary of purchasing the company's higher priced beverages and energy drinks.
However, shares of the company rose about 5% in extended trade, after the company said it estimates sales in January to be up about 17%, compared to a year ago.
With consumers in the U.S. battling higher costs of essentials like food and fuel, spending on pricier beverages has turned conservative, hurting sales for companies such as Monster, as well as rivals Keurig Dr Pepper (NASDAQ:KDP) and PepsiCo (NASDAQ:PEP).
Monster Beverage (NASDAQ:MNST) said it had implemented further price increases in some international markets in the current quarter, and is "continuing to monitor opportunities for further pricing actions in both the United States and internationally," co-CEO Rodney Sacks said during a post-earnings call.
Beverage companies resorted to several rounds of price hikes last year to offset higher costs of freight, aluminum and raw materials such as sugar.
While prices of freight and aluminum have cooled, higher sugar costs have continued to weigh.
Gross profit as a percentage of net sales for the October-to-December quarter was 54.2%, up from 53% in the prior quarter, with the company attributing the rise to higher prices in the period.
The company's net revenue in the fourth quarter rose 14.4% to $1.73 billion, falling short of analysts' estimate of a 16% rise to $1.75 billion.
Excluding items, the company earned 35 cents per share, compared with LSEG estimates of 38 cents per share.