What To Expect From Celsius’s (CELH) Q3 Earnings

Energy drink company Celsius (NASDAQ:CELH) will be announcing earnings results tomorrow morning. Here’s what to expect.

Celsius beat analysts’ revenue expectations by 2.4% last quarter, reporting revenues of $402 million, up 23.4% year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ gross margin estimates.

Is Celsius a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Celsius’s revenue to decline 30.5% year on year to $267.5 million, a reversal from the 104% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.01 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Celsius has missed Wall Street’s revenue estimates twice over the last two years.

Looking at Celsius’s peers in the beverages, alcohol and tobacco segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Vita Coco’s revenues decreased 3.7% year on year, missing analysts’ expectations by 4.3%, and Coca-Cola reported flat revenue, topping estimates by 2.9%. Vita Coco’s stock price was unchanged after the results, and Coca-Cola’s price followed a similar reaction.

Read our full analysis of Vita Coco’s results here and Coca-Cola’s results here.

Investors in the beverages, alcohol and tobacco segment have had steady hands going into earnings, with share prices flat over the last month. Celsius is up 7.8% during the same time and is heading into earnings with an average analyst price target of $45.06 (compared to the current share price of $31.07).

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