Celsius reported, in my view, very strong 3Q 2023 results pre-market today.
Conference Call today at 10am ET. Looking forward to the call.
So far, in my view impressive and strong results.
Long CELH.
Best,
Nick
Hakili, I see that you are a master of understatement 
!
When a company raises revenue by 104%, AND raises gross margins by 8.6 points, AND raises Adj EBITDA by 318%, AND raises quarterly EPS by $3.35 per share !!! (not a misprint, and seems to be Gaap), I’d call that a blow away quarter!
Saul
Correction, that (-2.46) EPS last quarter was probably a Gaap artifact, and because they had to buy out the rest of their previous distributers’ contracts when they signed on with Pepsi as their distributer.
It’s probably better to look at their sequential earnings EPS improvement of 71% QoQ, from 52 cents to 89 cents.
Saul
And the market yawns…
And it’s now diving with ~ -13% since closing on Friday, despite Jefferies buy recommendation and the good CPI report that has the market going +2% today. What could be the reasons? The 3x1 split? Realizing the 50% YTD profit? Moderately-high short interest of 18%? High valuation?
I’m not seeing company reasons for the decline, but I could be missing something. I’m debating if I take the opportunity and buy some more.
Hi Rodatl,
I was asking myself the exact same questions. With no news anywhere on either Celsius or Pepsi except the split occurring tomorrow, the only answer seems to be some misunderstanding about what a stock split means, or some arbitrage that I can’t imagine. I also thought of adding but since I already have an 11% position I may just sit and watch.
Saul
All the news was last week so I can’t imagine it taking this long to digest. I had a small position that got a little smaller until I added more shares.
Vince
There is a vague headline out from MS saying that “scanner” sales are slowing. I can’t read it so I have no clue what “cooling” is. The short interest in this name is ~20% so it can be very volatile.
Also a major holder Carl DeSantis passed a few months back and his estate held over 20Million shares of CELH. They could be using the earnings liquidity to divest the shares.
Bnh
I added a tiny bit at the low today, around $147, now at about 10.8% position. We could be looking at some nice upside in the near term - given the short interest, a short squeeze seems to be a likely scenario.
I am suspecting shorts using the stock splitt for manipulating the stock price for covering. Would not be surprised to see huge covering in the last hour of trading toady or early tomorrow, as long as indices are up tomorrow as well.
Nick
I consider Gary to be pretty credible.
Disclosure: I own CELH calls.
Rob
He is no fool who gives what he cannot keep to gain what he cannot lose.
Well, not exactly “no news.” Letitia James (should be a familiar name) has opened a suit against Pepsico for damage to the environment caused by single use plastic containers. The suit seeks cessation of the practice, disgorgement, civil penalties and restitution. Pepsico is headquartered in Purchase, NY.
This suit, if successful, has ramifications for the entire beverage industry. How the suit translates to an impact on Celsius (especially such a large impact) is pretty difficult to discern. I’ve not really looked into it, but from what I’ve actually seen, Celsius’s retail packaging appears to be aluminum cans.
Thanks brittlerock, but, I’d actually consider that suit as having no negative impact on Celsius whatsoever, since their product is exclusively in cans. If there’s any impact at all from this suit on Celsius, I imagine it’d be positive, especially if it causes any impact on the use of plastics. Celsius is way ahead of the game, in this regard.
Best, Brian
Perception is reality . . . While Celsius may exclusively use cans, if there’s a widespread perception that they use plastic containers that could possibly drive stock activity.
I am not saying that this is the case. I really don’t know what the majority of investors think on this subject and how that might influence buy/sell decisions of Celsius stock. As i said, the potential influence of this lawsuit with respect to Celsius is difficult to discern. I’ve only suggested that it might be a factor in the recent irrational sell off.