- Analysts, on average, expect Celsius Holdings to report fourth-quarter revenue of $638.62 million, a more than 92% jump from a year ago, according to Fiscal AI.
- Roth Capital in early February said that despite increasingly tougher comparisons, the data show the Celsius brand holding share.
- Celsius CEO John Fieldly said that retailers are allocating more shelf space to energy, which now represents 20% share of liquid refreshment beverage sales.
Celsius Holdings, Inc. shares are up nearly 5% so far this week heading into earnings, putting the stock on track for a second consecutive week of gains as investors watch for continued growth in the energy drinks market, where the company has been gaining ground against larger rivals PepsiCo, Inc. and The Coca-Cola Company.
Speaking at the Consumer Analyst Group of New York conference last week, CEO John Fieldly pointed to expanded shelf space and rising category demand. He said Celsius is strengthening its retail presence through a broader product assortment, ranging from single-serve cans and multi-packs to dedicated coolers that anchor the energy set, giving retailers more flexibility and consumers more targeted options.
Wall Street’s Expectations From BMO
Analysts, on average, expect Celsius Holdings to report fourth-quarter revenue of $638.62 million, a more than 92% jump from a year ago, and earnings per share of $0.18, compared with a loss of $0.10 a year ago, according to data from Fiscal AI.
In early February, Roth Capital analyst Sean McGowan said that the retail scan data for the fourth quarter was "encouraging", with category sales continuing to grow low-to-mid-teens over last year.
Roth Capital said that despite increasingly tougher comparisons, the data show the Celsius brand holding share, and Alani Nu continuing to grow faster than any other major energy drink brand, gaining significant share.
CELH Vs PEP Vs KO
Celsius has been able to gain market share in the drinks category and challenge bigger rivals such as PepsiCo and Coca-Cola, which are seeing a hit to their traditional soda offerings as more Americans are choosing healthier food and drinks.
Shares of Celsius have gained nearly 11% so far this year compared to PepsiCo’s 18% and Coca-Cola’s 15% increase for the same period.
To better compete, PepsiCo, which holds a stake in Celsius, bought prebiotic soda brand Poppi for $1.95 billion last year as part of its strategy to build on the healthier soda segment. Coca-Cola, on the other hand, has been expanding its brand “Simply” to launch a prebiotic soda called "Simply Pop.”
“I want to step back and talk about the category as itself. Energy has evolved from a narrow transactional category, driven by impulse purchases, to a lifestyle-driven one,” Celsius CEO Fieldly said, adding that retailers are allocating more shelf space to energy, which now represents 20% share of liquid refreshment beverage sales.
How Are Stocktwits Users Reacting?
Retail sentiment on Celsius jumped to ‘extremely bullish’ from ‘neutral’ a week ago, with message volumes at ‘extremely high’ levels, according to data from Stocktwits.
Sentiment on PepsiCo was in the ‘neutral’ territory, while on Coca-Cola, retail sentiment remained in the ‘bearish’ zone.
A user on Stocktwits noted that comments on PepsiCo’s transition will be key to the stock going higher, not prior-quarter earnings.
A bullish user on the platform said the stock could break $60, implying a 19% upside to the company’s last closing price.
Shares of Celsius have surged more than 88% in the last 12 months.
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