Shares of Celsius Holdings (CELH) declined in trading after the company reported disappointing results. The energy beverage company nearly broke even in the third quarter, compared to earnings of $0.30 per share in the same period last year. Analysts had expected the company to report earnings of $0.02 per share.
CELH’s Revenues Plunge in North America
Furthermore, the company’s revenues declined by 31% year-over-year to $265.7 million in the third quarter, falling short of Street estimates of $266.7 million. Additionally, CELH’s revenues in North America declined by 33% year-over-year to $247.1 million, comprising more than 90% of the company’s total revenues.
CELH Management Comments on Shrinking Earnings
Jarrod Langhans, CFO of Celsius Holdings, commented that the company’s gross and operating margins in the third quarter fell short as orders decreased significantly due to its “largest distributor implemented a sizable, successful and efficient supply chain optimization program in the quarter, but we managed our sales and marketing spend to minimize interruptions while still turning a profit in the quarter.”
Is CELH a Good Stock to Buy?
Analysts remain cautiously optimistic about CELH stock, with a Moderate Buy consensus rating based on nine Buys, three Holds, and one Sell. Over the past year, CELH has plunged by more than 40%, and the average CELH price target of $46.77 implies an upside potential of 55.8% from current levels. These analyst ratings are likely to change following CELH’s results today.
