Investors warmed to Celsius Holdings (CELH) after the company abruptly brought forward its earnings report to today, Thursday February 20th. CELH rallied almost 15% on Wednesday as the drinks maker said it would release its Fiscal fourth quarter and full-year 2024 financial results after markets close today.
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Celsius, which makes a range of fitness and energy drinks, also said executives would attend the Consumer Analyst Group of New York (CAGNY) Conference on Feb. 21, 2025.
The earnings date change and appearance at the well-known consumer analyst event the following day clearly produced a positive effect on investor sentiment after a troubled last nine months for the embattled brand. After the 15% gain shares though dipped a little in the premarket session on Thursday.
CELH Struggles
CELH has been on a steep downward trend since May as the high-growth brand saw its expansion plans run into trouble. PepsiCo (PEP), its major distributor in the U.S., slashed orders as it worked down inventory.
Subsequently, a class action lawsuit was filed by investors claiming CELH overstated its partnership with PepsiCo, concealing the fact its rapid growth was unsustainable.
Under the terms of a tie-up in 2022, PepsiCo made a $550 million investment in the energy drink maker as part of a long-term distribution deal. In 2020 PEP had bought energy drink company Rockstar for $3.85 billion in a bid to revitalize sales of the older brand.
CELH Earnings
In November, reporting Fiscal third quarter numbers the company reported a 31% decrease in quarterly revenue to $265.7 million, impacted by a $124 million hit from the Pepsi partnership.
Celsius saw a 7.1% year-over-year increase in retail sales and a 7.3% rise in unit sales, contributing to it gaining 16% of overall energy category growth. North American revenue fell 33% to $247 million, while international revenue rose 37% to $18.6 million.
Is CELH a Good Stock to Buy?
Overall, Wall Street has a Moderate Buy rating on CELH stock, based on seven Buys, five Holds and one Sell. Based on 13 Wall Street analysts offering 12-month price targets for Celsius Holdings in the last 3 months, the average CELH price target is $34.00. This implies about 30% upside after the stock declined about 70% since May last year, but is liable to change after earnings later.
