Have you evaluated the performance of Celsius Holdings Inc.'s (CELH) international operations for the quarter ending September 2024? Given the extensive global presence of this company, analyzing the patterns in international revenues is crucial for understanding its financial strength and potential for growth.

In the current global economy, which is more interconnected than ever, a company's success in penetrating international markets is crucial for its financial health and growth journey. Investors must understand a company's dependence on overseas markets, as this offers a window into the company's earnings stability, its ability to benefit from varied economic cycles and its potential for long-term growth.

International market involvement serves as insurance against economic downturns at home and enables engagement with economies that are growing more quickly. Still, this move toward diversification is not without its challenges, as it involves navigating through the fluctuations of currencies, geopolitical threats, and the distinctive nature of various markets.

Upon examining CELH's recent quarterly performance, we noticed several interesting patterns in the revenue generated from its international segments, which are commonly analyzed and observed by Wall Street experts.

The company's total revenue for the quarter stood at $265.75 million, declining 30.9% year over year. Now, let's delve into CELH's international revenue breakdown to gain insights into the significance of its operations beyond home turf.

Unveiling Trends in CELH's International Revenues

Asia-Pacific accounted for 0.22% of the company's total revenue during the quarter, translating to $0.59 million. Revenues from this region represented a surprise of -57.72%, with Wall Street analysts collectively expecting $1.41 million. When compared to the preceding quarter and the same quarter in the previous year, Asia-Pacific contributed $0.86 million (0.21%) and $1.25 million (0.32%) to the total revenue, respectively.

Of the total revenue, $16.24 million came from Europe during the last fiscal quarter, accounting for 6.11%. This represented a surprise of -3.52% as analysts had expected the region to contribute $16.84 million to the total revenue. In comparison, the region contributed $16.68 million, or 4.15%, and $11.04 million, or 2.87%, to total revenue in the previous and year-ago quarters, respectively.

During the quarter, Other International contributed $1.79 million in revenue, making up 0.67% of the total revenue. When compared to the consensus estimate of $1.59 million, this meant a surprise of +12.68%. Looking back, Other International contributed $2.08 million, or 0.52%, in the previous quarter, and $1.29 million, or 0.34%, in the same quarter of the previous year.

Projected Revenues in Foreign Markets

It is projected by analysts on Wall Street that Celsius will post revenues of $338.15 million for the ongoing fiscal quarter, a decline of 2.7% from the year-ago quarter. The expected contributions from Asia-Pacific, Europe and Other International to this revenue are 0.3%, 6.2% and 0.7%, translating into $0.97 million, $20.92 million and $2.3 million, respectively.

For the entire year, the company's total revenue is forecasted to be $1.36 billion, which is an improvement of 3.3% from the previous year. The revenue contributions from different regions are expected as follows: Asia-Pacific will contribute 0.2% ($3.25 million), Europe 5.1% ($69.73 million) and Other International 0.5% ($7.11 million) to the total revenue.

The Bottom Line

The dependency of Celsius on global markets for its revenues presents a mix of potential gains and hazards. Thus, monitoring the trends in its overseas revenues can be a key indicator for predicting the firm's future performance.

In an environment where global interconnections and geopolitical skirmishes are intensifying, Wall Street analysts keep a keen eye on these trends, particularly for firms with overseas operations, to adjust their earnings predictions. Moreover, a range of other aspects, including how a company fares in its home country, significantly affects these projections.

We at Zacks strongly focus on the dynamic earnings forecast of companies, given that empirical studies have demonstrated its potent impact on the immediate price movement of stocks. Invariably, there's a positive relationship -- upward earnings predictions often result in an increase in stock prices.

Our proprietary stock rating tool, the Zacks Rank, with its externally validated exceptional track record, harnesses the power of earnings estimate revisions to serve as a dependable measure for anticipating the short-term price trends of stocks.

Celsius currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Examining the Latest Trends in Celsius' Stock Value

The stock has declined by 11.9% over the past month compared to the 4.4% rise of the Zacks S&P 500 composite. Meanwhile, the Zacks Consumer Staples sector, which includes Celsius, has decreased 1.4% during this time frame. Over the past three months, the company's shares have experienced a loss of 28.1% relative to the S&P 500's 13.1% increase. Throughout this period, the sector overall has witnessed a 1.1% decrease.

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