Monster Beverage (NASDAQ:MNST) experienced a notable decline intra-day today, with shares dropping 10% following its second-quarter earnings report, which did not meet Street expectations.

The energy drink company reported adjusted earnings per share of $0.41, falling short of the anticipated $0.45. Revenue for the quarter reached $1.90 billion, under the forecasted $2.02 billion, though it marked a 2.5% year-over-year increase.

Monster's core energy drinks segment saw a 3.3% rise in net sales, totaling $1.74 billion. However, unfavorable foreign exchange rates negatively impacted overall net sales by $67.7 million.

Hilton H. Schlosberg, Vice Chairman and Co-Chief Executive Officer, noted a deceleration in growth within the energy drink category in the United States and other markets. He attributed this slowdown to reduced foot traffic in convenience stores and a retail shift towards mass and dollar channels.

Despite these challenges, Monster Beverage managed to improve its gross profit margins to 53.6%, up from 52.5% in the same quarter last year. This improvement was driven by lower freight costs and strategic pricing adjustments in certain markets.