Monster Beverage (NASDAQ:MNST) reported better-than-expected earnings and revenue in the first quarter, with price increases positively impacting its results.

The energy drink company reported Q1 EPS of $0.38, $0.04 better than the analyst estimate of $0.34. Revenue for the quarter came in at $1.7 billion, a record for the quarter, while it was also above the consensus estimate of $1.69B.

However, the company said it faced foreign exchange headwinds in the quarter, which adversely impacted net sales.

MNST’s pricing actions in the US and certain other international markets boosted its gross profit margins. Gross profit as a percentage of net sales increased on a sequential quarterly basis to 52.8% in Q1 2023 first quarter from 51.8% in Q4 2022.

“The energy drink market continues to expand on a global basis. We are pleased to report another quarter of continued revenue growth with record sales for our first fiscal quarter, although the quarter was again adversely impacted by the strength of the United States dollar,” said Hilton Schlosberg, vice chairman and co-chief executive officer of MNST.

Reacting to the results, Citi analysts raised the firm’s price target on the stock to $67 from $61 per share, maintaining a Buy rating.

“MNST reported 1Q’23 EPS of $0.38, above our on-consensus $0.33 estimate. The beat was driven by slightly higher topline growth, solid gross and operating margin beats, and a lower tax rate. Geographically, US sales came in better-than-expected at +11.5% (above cons. +9.7%), and int’l sales growth ex-FX was strong at +21.9%,” the analysts wrote.

“Overall, the results were better than feared (we were worried about a potential US sales miss on comparisons) and the gross margin inflection in Q1 highlights the opportunity for further improvement in the balance of the year, a key tenet of our Buy rating.”