Celsius Holdings Inc., traded under the ticker symbol CELH, reported its fourth-quarter 2024 earnings on Feb. 20, 2025, with media coverage largely positive. Outlets primarily discussed the company’s strong earnings beat and its strategic acquisition of Alani Nu.
Celsius’ stock increased more than 25 percent following the earnings report, with several top-tier financial outlets highlighting the company’s ability to outperform expectations.
Investor optimism was prompted by the company’s sustained revenue growth and its efforts to strengthen its market position through mergers and acquisitions (M&A) activity. Analysts frequently noted that the company’s strong performance reinforces its position as a key player in the competitive energy drink space.
Key Themes in Business Media Coverage
1. Stronger-than-expected Q4 earnings
Most outlets reported favorably on Celsius’ fourth-quarter results, which exceeded Wall Street estimates.
- CNBC reported that Celsius’ revenue of $332.2 million topped the analyst consensus of $326 million, while its adjusted earnings per share of 14 cents beat expectations of 12 cents.
- Wall Street Journal and Barron’s both highlighted that the company’s earnings beat helped restore investor confidence, after a year of declining stock prices.
- However, coverage touched on concerns about a revenue decline year over year.
- Bloomberg News noted that revenue was down 4.4 percent from the same quarter last year, attributing it to increased competition and a slowdown in retail expansion.
- Wall Street Journal highlighted that Celsius swung to a net loss of $18.9 million, compared with a $50.1 million profit in the same quarter the year before.
2. Alani Nu acquisition increases investor interest
The announcement of Celsius’ $1.8 billion acquisition of Alani Nu was the primary focus in earnings media coverage.
- CNBC noted that this deal will allow Celsius to expand its footprint among female energy drink consumers and create an even larger “better-for-you” energy drink platform.
- Bloomberg stated that Celsius’ revenue growth had slowed in recent quarters, making the acquisition a strategic move to reignite momentum.
- Wall Street Journal featured the perspective of a Jefferies analyst, who reported that Celsius’ growth slowed over the past year, while the “smaller Alani Nu has made some of the biggest market-share gains in energy drinks.”
Several analysts raised concerns about overlap between Celsius and Alani Nu.
- CNBC and Barron’s both cited Truist analyst Bill Chappell, who highlighted that Celsius and Alani target a similar demographic, meaning sales could weaken one another rather than drive overall category expansion.
- Morgan Stanley analyst Eric Serotta added that the deal was “likely done from a defensive posture” to prevent further market share harm.
3. Short squeeze and stock performance influence market reactions
Coverage also highlighted how Celsius’ stock movement was influenced by significant short interest.
- CNBC reported that 22 percent of Celsius’ available shares were sold short prior to the earnings report, leading to a short squeeze that helped drive its post-earnings success.
- Investor’s Business Daily pointed out that Celsius stock jumped above its 50-day moving average, signaling a rise in investor confidence.
- However, Barron’s warned that while the deal could strengthen growth, pressures from major brands like Red Bull and Monster will lead to “a hyper-promotional landscape in 2025,” potentially impacting profitability.
*All content is for academic purposes only and in no way affiliated with Celsius.