Celsius Holdings sees big drop in stock price due to disappointing earnings report

From Nasdaq: 2024-11-13 09:00:00

Celsius Holdings Inc. (NASDAQ: CELH) reported disappointing earnings on November 6, missing revenue and earnings expectations. Revenue was $265.75 million, down 30% from the same quarter last year. CELH stock dropped 8.9% for the week and 47% in 2024.

The revenue decline was due to PepsiCo’s supply chain optimization, affecting convenience store sales, which account for 62% of energy drink sales. Consumer traffic is down in 2024, impacting sales.

Despite challenges, Celsius still maintains a 46% gross margin, strong international sales growth, and a healthy balance sheet. However, concerns about inventory impact on revenue, high valuation, and competition remain. CELH stock remains expensive at over 40x earnings.

Analysts see a potential 80% upside for CELH stock with a consensus price target of $54.40. While the stock may have found a bottom, short-term bearish sentiment persists. Long-term investors may see potential in a quarter or two.



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