By Evie Liu
Celsius Holdings stock shot up nearly 15% on Wednesday after the energy drink maker abruptly said it would report earnings on Thursday and participate in a well-known consumer analyst conference on Friday, where executives will make a presentation.
Such announcements of earnings report dates and conference participation don't usually move stocks. But companies alert investors of such plans in advance. Celsius' sudden notice seems to have led the market to believe that it has good news -- something much needed for the stock that has been battered over the past few months. Celsius couldn't immediately be reached for comment.
Celsius shares have slumped since May as the fast-growing brand ran into trouble with its expansion plans. PepsiCo, its major distributor in the U.S., reduced orders as it adjusts the amount of inventory it holds, hurting Celsius' financial results.
For the three months ended in September, Celsius reported earnings and revenue that both missed Wall Street estimates. Total sales declined 30% from the year-ago quarter and the company barely broke even, compared with per-share earnings of 30 cents a year ago.
Investors are concerned that weakness in consumer spending could bring headwinds to the energy drink sector as well. Dominating brands like Red Bull and Monster Beverage are fighting to win back lost market share, while new rivals are growing in popularity.
For the fourth quarter of 2024, analysts polled by FactSet expect Celsius to post $328 million in sales, down more than 5% from the year-ago period, and earnings to come at 11 cents per share compared with 17 cents a year ago.
As Pepsi's supply-chain adjustment settles down, Wall Street expects Celsius to start recovering in 2025. Rather than the quarterly results, investors will closely watch what management says about its 2025 outlook on Thursday's earnings call, and at Friday's presentation at the Consumer Analyst Group of New York Conference.
Write to Evie Liu at evie.liu@barrons.com
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February 19, 2025 16:58 ET (21:58 GMT)
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