Celsius Holdings Inc. (NASDAQ:CELH) Surpasses EPS Estimates but Misses on Revenue
- Celsius Holdings Inc. (NASDAQ:CELH) reported EPS of $0.04276, beating estimates but missed revenue forecasts.
- The company showed a significant year-over-year decline in profitability with a break-even EPS compared to $0.30 in the same quarter last year.
- Despite earnings challenges, CELH maintains investor confidence with a P/E ratio of 33.56 and strong liquidity indicators.
Celsius Holdings Inc. (NASDAQ:CELH) is renowned for its fitness-oriented beverages, championing its #LiveFit initiative. On November 6, 2024, CELH reported earnings per share (EPS) of $0.04276, surpassing the estimated $0.03. However, the company's actual revenue of approximately $265.7 million slightly missed the estimated $267.1 million.
In the third quarter of 2024, CELH reported break-even earnings per share, falling short of the Zacks Consensus Estimate of $0.05 per share. This marks a significant decline from the $0.30 per share reported in the same quarter last year, indicating a notable drop in profitability year-over-year. Despite this, the company maintains a strong market presence with a price-to-earnings (P/E) ratio of 33.56, showing investor confidence.
CELH's financial metrics reveal insights into its market valuation. The price-to-sales ratio of 5.05 suggests that the market values the company's sales at over five times its revenue. Additionally, the enterprise value to sales ratio of 4.39 reflects the company's total valuation relative to its sales, indicating a solid market position despite recent earnings challenges.
The company's financial health is further supported by a low debt-to-equity ratio of 0.014, indicating minimal reliance on debt financing. This is complemented by a strong current ratio of 4.71, showcasing CELH's ability to cover short-term liabilities with its current assets. These metrics highlight the company's robust liquidity and financial stability.
CELH's earnings yield of approximately 2.98% provides insight into the return on investment for shareholders. This figure, being the inverse of the P/E ratio, suggests that despite recent earnings challenges, the company still offers a reasonable return to its investors. The enterprise value to operating cash flow ratio of 31.28 further illustrates how the company's valuation compares to its cash flow from operations, emphasizing its operational efficiency.
| Symbol | Price | %chg |
|---|---|---|
| KO.BA | 18700 | -0.27 |
| PEP.BA | 10875 | -0.92 |
| CLEO.JK | 1430 | 0 |
| ADES.JK | 9900 | 0 |
Truist Upgrades Celsius to Buy, Shares Soar 6%
Celsius Holdings (NASDAQ:CELH) shares surged more than 6% intra-day today after Truist Securities upgraded the company to Buy, lifting its 12-month price target from $35 to $45, as the firm shifts focus toward the company’s long-term growth potential following its Alani Nu acquisition.
Analysts noted that while Celsius has faced short-term challenges, including legacy business issues in 2024 and a slower start to Q1 2025, investor sentiment is now pivoting toward the strategic benefits of its latest deal.
The acquisition of Alani Nu gives Celsius a powerful foothold in the fast-growing women’s segment of the U.S. energy drink market, expanding both its demographic reach and product offerings.
Truist believes the integration of Alani Nu positions Celsius for renewed momentum, and the market appears to be discounting recent setbacks in favor of long-term brand synergy and distribution upside.
