What Happened?

Shares of energy drink company Celsius (NASDAQ:CELH) jumped 14.9% in the morning session after Wall Street analysts provided positive updates on the company. Stifel observed improving sales trends, adding, "Energy drink trends should accelerate led by comparables, innovation, [and] pricing." Additionally, Piper Sandler's findings confirmed Celsius's popularity among teenagers. These updates are supportive of improved demand for Celsius's offerings, while underscoring the company's strong positioning in the competitive energy drink market.

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What The Market Is Telling Us

Celsius’s shares are extremely volatile and have had 31 moves greater than 5% over the last year. But moves this big are rare even for Celsius and indicate this news significantly impacted the market’s perception of the business.

The biggest move we wrote about over the last year was 7 months ago when the stock gained 14% on the news that the company reported fourth-quarter results that blew past analysts' revenue and adjusted EBITDA expectations. Notably, topline growth was strong as revenue grew 95% year on year, driven mostly by North American revenue (up 97% year on year).

Management noted that the North American business was led by expansion in distribution points and higher SKUs per location. International revenue also came in strong. This was driven by new flavor launches, product availability, and increased velocity. As a result, the gross margin improved significantly (up 110% y/y) and contributed significantly to the EBITDA beat.

On the other hand, its EPS narrowly missed analysts' expectations. Zooming out, this was still a decent, albeit mixed, quarter, showing that the company is staying on track.

Celsius is down 41.6% since the beginning of the year, and at $34.40 per share, it is trading 64.2% below its 52-week high of $96.11 from March 2024. Investors who bought $1,000 worth of Celsius’s shares 5 years ago would now be looking at an investment worth $32,048.

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