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This Once High-Flying Stock Has Roared Back to Growth

Key Takeaways

  • {\"0\":\"Celsius has returned to growth. \",\"1\":\"The company recently broke quarterly sales records. \",\"2\":\"Analysts have been bullish on its current fiscal year expectations. \"}

Celsius Holdings, Inc. (CELH - Free Report) is a global beverage company and maker of premium, lifestyle energy drink CELSIUS, a healthier zero-sugar alternative to traditional energy beverages.

Shares have been red-hot on the back of quarterly results over the last three months, with its latest set revealing a return to sales growth for the first time in several periods.

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Image Source: Zacks Investment Research

The stock has overall had an interesting story, initially soaring on the back of red-hot growth before plunging in the back half of 2024. Given its return to growth, does it deserve another look? Let’s see how the company currently stacks up.

Celsius Breaks Sales Record

Analysts’ EPS revisions for its current fiscal year have entirely reversed course since the beginning of August, with the current $1.13 Zacks Consensus EPS estimate up 13% over the past year and suggesting 60% year-over-year growth.

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Image Source: Zacks Investment Research

Sales expectations for its current fiscal year have also followed a similarly strong bullish path, with the $2.4 billion estimate reflecting 80% year-over-year growth.

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Image Source: Zacks Investment Research

After experiencing years of sizable year-over-year sales growth percentages, weakening rates reflected a massive red flag for growth-focused investors. Importantly, sales growth turned positive again in its latest period on a YoY basis, allowing the stock to see strong post-earnings gains. Please note that the chart below tracks YoY % change in sales, not actual sales numbers.

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Image Source: Zacks Investment Research

Sales of $740 million reflected a quarterly record and soared more than +80% year-over-year, whereas adjusted EPS was up a sizable 70% YoY. Further adding to the positivity, Celsius’ portfolio surpassed $4B in tracked retail sales over a 52-week period (as of late July), impressively exceeding that of the next eight energy drink brands combined.

While the sales growth jumps off the page, it’s critical to note that its Alani Nu acquisition contributed in a big way. But even without the contribution, sales growth remained positive at +9% YoY.

Bottom Line

A return to sales growth has perked up Celsius (CELH - Free Report) shares again, with its recent Alani Nu acquisition also providing nice tailwinds. Analysts’ earnings and sales outlooks have shifted bullishly as a result, with the company expected to see big growth again for its current fiscal year.


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