Celsius Holdings (NASDAQ:CELH) shares surged nearly 10% in the pre-market session today after the consumer packaged goods provider reported a 104% year-over-year increase in revenue for the third quarter, reaching $385 million. The figure comfortably outpaced estimates by nearly $33.5 million. Similarly, EPS of $0.89 exceeded expectations by $0.38.
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This surge in the company’s top line was driven by a 107% revenue jump in the North American region and a 56% increase in International revenue. During the quarter, Celsius expanded its total distribution points and increased SKUs per location in North America. In sync, the company’s gross margin expanded by 860 basis points to 50.4%, thanks to lower packaging and material costs and improved freight lane efficiency.
Impressively, CELSIUS is the highest-selling energy drink on Amazon (NASDAQ:AMZN), holding a 21.4% share in the energy drink category, and it commands a 10.5% market share in the U.S., according to Circana. The company had a healthy cash pile of $760 million at the end of the quarter.
What Is the Projection for CELH Stock?
Overall, the Street has a Strong Buy consensus rating on Celsius. Following a massive 103% rally in Celsius shares over the past year, the average CELH price target of $214.5 implies a further 21.2% potential upside in the stock.
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