Celsius (NASDAQ:CELH) Announces Earnings Results, Beats Estimates By $0.07 EPS

Celsius (NASDAQ:CELH) announced its quarterly earnings data on Thursday. The company reported $0.41 earnings per share for the quarter, topping analysts’ consensus estimates of $0.34 by $0.07, FiscalAI reports. The firm had revenue of $847.23 million for the quarter, compared to analyst estimates of $800.63 million. Celsius had a return on equity of 36.52% and a net margin of 4.24%. Celsius’s quarterly revenue was up 16.8% on a year-over-year basis. During the same quarter in the prior year, the company posted ($0.27) earnings per share.

Here are the key takeaways from Celsius’ conference call:

• Third-quarter revenue rose 17% to approximately $847 million, led by Alani Nu’s record $410 million in net sales. Alani Nu’s retail sales grew 58%, core retail sales excluding Witch’s Brew grew about 50%, and non-U.S. revenue increased 56%.
• Brand CELSIUS remained weak, with retail sales down about 7% and net sales down about 6% year over year. Management expects the brand to return to growth in 2027, citing planned innovation and continued work on the core portfolio.
• Rockstar showed signs of stabilization: continuing SKUs were within about 1% of prior-year retail sales, and dollars per point of distribution improved about 14% sequentially. However, total retail sales were still down about 13% year over year, and management did not forecast a return to growth yet.
• Gross margin fell to 46.8%, from 51.3% a year earlier, as higher aluminum and diesel costs offset operational improvements. The company expects full-year gross margin in the high 40s and said margin recovery may take longer than previously anticipated.
• Management expects fourth-quarter reported revenue growth to be below the first three quarters, citing $20–$25 million of shipments pulled forward into Q3, a difficult prior-year comparison, and higher trade investment. It characterized these as timing and comparison effects rather than a sign of weaker underlying demand.

Celsius Price Performance

NASDAQ CELH traded up $2.12 during mid-day trading on Friday, hitting $32.16. The stock had a trading volume of 8,187,595 shares, compared to its average volume of 5,140,359. Celsius has a 52-week low of $23.56 and a 52-week high of $59.31. The company has a market cap of $8.14 billion, a price-to-earnings ratio of 35.73, a P/E/G ratio of 2.16 and a beta of 1.00. The company has a 50 day simple moving average of $28.75 and a 200 day simple moving average of $34.13. The company has a quick ratio of 1.42, a current ratio of 1.80 and a debt-to-equity ratio of 0.56.

Analysts Set New Price Targets

A number of research firms have commented on CELH. Jefferies Financial Group reissued a “buy” rating and issued a $42.00 target price on shares of Celsius in a report on Tuesday, October 6th. Stifel Nicolaus set a $36.00 price target on shares of Celsius in a research note on Friday. Weiss Ratings downgraded shares of Celsius from a “hold (c-)” rating to a “sell (d+)” rating in a report on Tuesday, August 11th. Needham & Company LLC raised their price objective on shares of Celsius from $35.00 to $40.00 and gave the company a “buy” rating in a research note on Friday. Finally, Citigroup reduced their price objective on shares of Celsius from $50.00 to $40.00 and set a “buy” rating for the company in a research note on Friday, August 7th. Fourteen analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, Celsius presently has an average rating of “Moderate Buy” and an average target price of $42.39.

Key Headlines Impacting Celsius

Here are the key news stories impacting Celsius this week:

• Positive Sentiment: Third-quarter earnings were $0.41 per share versus $0.34 expected, and revenue of $847.2 million topped the $800.6 million consensus estimate, rising 16.8% year over year. Alani Nu and international sales helped drive growth. CELH Q3 Earnings Top Estimates as Alani Nu Drives Revenue Growth
• Positive Sentiment: The company is targeting longer-term growth through a new three-brand operating structure and expects non-U.S. revenue to exceed 15% of total revenue within five years. Celsius outlines international revenue goal and new brand-led units
• Neutral Sentiment: Analyst target changes were mixed: Needham raised its target to $40, while B. Riley and Stifel lowered theirs to $53 and $36, respectively, even as B. Riley reaffirmed its Buy rating. Stifel lowers Celsius price target
• Negative Sentiment: Flagship CELSIUS brand weakness, commodity inflation and margin pressure temper the strong sales report and could complicate the company’s recovery plans. CELH Q3 Earnings Call Highlights Alani Nu Growth and Margin Pressure

Insider Buying and Selling

In other news, Director Damon DeSantis bought 20,000 shares of the stock in a transaction on Monday, September 14th. The shares were bought at an average price of $27.65 per share, with a total value of $553,000.00. Following the completion of the acquisition, the director owned 2,712,187 shares of the company’s stock, valued at approximately $74,991,970.55. This trade represents a 0.74% increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Hal Kravitz purchased 12,000 shares of the company’s stock in a transaction dated Tuesday, September 15th. The stock was purchased at an average price of $28.00 per share, with a total value of $336,000.00. Following the transaction, the director owned 239,158 shares of the company’s stock, valued at approximately $6,696,424. This represents a 5.28% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Over the last ninety days, insiders bought 66,000 shares of company stock valued at $1,830,120. 2.33% of the stock is owned by insiders.

About Celsius

Celsius Holdings, Inc (NASDAQ: CELH) develops, markets and distributes functional beverages designed to support active lifestyles. Its flagship CELSIUS brand offers carbonated and non-carbonated energy drinks, including products positioned around energy, fitness and wellness. The company also markets CELSIUS Essentials, CELSIUS Vibe and powdered drink mixes, with product formulations that commonly feature ingredients such as caffeine, vitamins and other functional components.

Founded in 2004, Celsius has expanded from a niche fitness beverage business into a broader energy-drink platform.