Celsius earnings: what to look for from CELH

What happened

Celsius is scheduled to report earnings this Thursday before market hours. Last quarter, it reported revenue of $817.9 million, up 10.6% year over year, but missed analysts’ revenue, EBITDA, and EPS estimates. Analysts expect this quarter’s revenue to grow 9.7% year over year, below last year’s 173% increase.

Confirmed

Global impact / market context

Revenue growth is a measure of how quickly sales are expanding. If Celsius reports slower growth than last year and misses expectations again, investors could reassess expected sales and profit per sale, which may affect how they value the company and their willingness to hold its shares.

Analyst inference

The article says analysts generally reconfirmed their estimates in the past 30 days, suggesting expectations had not shifted much before results. Peer results are mixed: Vita Coco beat revenue expectations while Coca-Cola also topped estimates, but their results do not establish how Celsius performed.

Analyst inference

What to watch

1. Check whether Celsius’s reported revenue growth is near the expected 9.7% year-over-year rate, and compare it with last year’s 173% increase. Confirmed
2. Look for reported EBITDA and EPS, measures of operating earnings and earnings per share, and whether Celsius meets analysts’ expectations after last quarter’s misses. Confirmed
3. Compare Celsius’s results with the peer examples in the article, while recognizing that different sales trends may limit what those companies’ results imply for Celsius. Analyst inference

Evidence

• stockstory.org