Celsius (NASDAQ:CELH) Issues Quarterly Earnings Results, Beats Expectations By $0.07 EPS

Key Points

• Celsius reported EPS of $0.41, beating the $0.34 consensus, while revenue of $847.2 million exceeded estimates and grew 16.8% year over year.
• Growth was led by Alani Nu, whose net sales reached a record $410 million; international revenue also increased 56%.
• Results were tempered by pressure on the flagship CELSIUS brand and margins: gross margin fell to 46.8%, and management expects fourth-quarter revenue growth to slow versus the first three quarters.

Celsius (NASDAQ:CELH - Get Free Report) released its quarterly earnings results on Thursday. The company reported $0.41 EPS for the quarter, topping analysts' consensus estimates of $0.34 by $0.07, FiscalAI reports. The company had revenue of $847.23 million for the quarter, compared to analysts' expectations of $800.63 million. Celsius had a return on equity of 36.52% and a net margin of 4.24%. The firm's revenue was up 16.8% compared to the same quarter last year. During the same period in the prior year, the firm earned ($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 Stock Performance

CELH traded up $2.12 on Friday, hitting $32.16. 8,187,595 shares of the company traded hands, compared to its average volume of 5,140,359. The company has a 50 day moving average of $28.75 and a 200-day 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. The stock has a market capitalization of $8.14 billion, a PE ratio of 35.73, a PEG ratio of 2.16 and a beta of 1.00. Celsius has a 12-month low of $23.56 and a 12-month high of $59.31.

Insider Buying and Selling

In other news, CEO John Fieldly bought 18,000 shares of the stock in a transaction dated Thursday, September 10th. The shares were acquired at an average price of $27.44 per share, with a total value of $493,920.00. Following the completion of the acquisition, the chief executive officer directly owned 956,063 shares in the company, valued at approximately $26,234,368.72. The trade was a 1.92% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Damon DeSantis purchased 16,000 shares of the company's stock in a transaction dated Tuesday, September 15th. The shares were purchased at an average price of $27.95 per share, for a total transaction of $447,200.00. Following the completion of the purchase, the director owned 2,728,187 shares of the company's stock, valued at approximately $76,252,826.65. This trade represents a 0.59% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Insiders purchased a total of 66,000 shares of company stock valued at $1,830,120 over the last three months. 2.33% of the stock is currently owned by company insiders.

Celsius News Roundup

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

Wall Street Analysts Forecast Growth

A number of brokerages have recently weighed in on CELH. Stephens reduced their price objective on shares of Celsius from $65.00 to $50.00 and set an "overweight" rating on the stock in a report on Monday, August 10th. Maxim Group downgraded shares of Celsius from a "buy" rating to a "hold" rating in a research note on Friday, August 7th. Weiss Ratings downgraded shares of Celsius from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Tuesday, August 11th. Roth Capital reissued a "buy" rating and issued a $48.00 target price on shares of Celsius in a report on Friday, August 7th. Finally, Morgan Stanley set a $42.00 price target on Celsius and gave the company an "overweight" rating in a research note on Friday, August 7th. Fourteen investment analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $42.39.

Celsius Company Profile

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.

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