Monster's miss on Q2 earnings estimates was down to a slow June, but its ability to grow internationally remains "substantial", according to an analyst.

The California-based energy drinks group reported a sharp rise in net profits and sales yesterday. However, its share price took a hit in after hours trading, down by 19% to US$55.38 per share, as it missed estimates for sales growth.

But analysts Stifel Nicolaus said it believes the dip is "more a function of timing than materially slowing end-demand". 

Another reason, it suggested, was due to "product damage associated with the roll-out into Japan and Korea, that will normalise in time".

In international markets,  Monsters performed well in Q2 as sales rose by 50% to $153.4m. Stifel Nicolaus was encouraged by this. "We believe the runway for international growth is substantial, as Red Bull’s 2011 non-US sales were 15x Monster’s international sales and growing double-digits more than 20 years after the product’s introduction," it said.

The note added: "While Monster's shares are likely to be pressured near term, given concerns regarding slowing sales growth, we continue to believe the company can achieve a mid-teens sales CAGR through 2015, resulting from continued US share gains, innovation, and international expansion."