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Things to Know Before Celsius Holdings (CELH) Q2 Earnings

Zacks Equity Research
·3 min read

Celsius Holdings, Inc. CELH is likely to report a rise in the top and bottom lines when it releases second-quarter 2020 numbers on Aug 6, before the opening bell. The Zacks Consensus Estimate stands at a loss of a cent compared with a loss of 3 cents reported in the year-ago period. Notably, the consensus mark has remained stable in the past 30 days. In the last reported quarter, this provider of fitness beverages delivered a significant earnings surprise.

The Zacks Consensus Estimate for revenues is pegged at almost $24 million, indicating growth of 48.7% from the prior-year quarter’s reported figure.

Celsius Holdings Inc. Price, Consensus and EPS Surprise

Celsius Holdings Inc. Price, Consensus and EPS Surprise
Celsius Holdings Inc. Price, Consensus and EPS Surprise

Celsius Holdings Inc. price-consensus-eps-surprise-chart | Celsius Holdings Inc. Quote

Key Factors to Note

Celsius Holdings has been benefiting from consumers’ inclination toward healthy alternatives. Even amid the pandemic-led disruptions, increased online ordering, curbside pickup and pantry loading due to higher stay-at-home trends have been working well for the company. Further, Celsius Holdings has been focused on strengthening its national distribution network, which included more than 100 regional direct store delivery or DSD partners as of the end of the first quarter. Incidentally, the company made its products available to more than 1,500 store locations countrywide (in the first quarter) through Walmart. It also enhanced its assortments at Target — one of the company’s core retail partners. These upsides are likely to have benefited the company’s second-quarter performance.

Robust brands along with its increasing network of retailers, partners and distributors are supporting Celsius Holdings even amid the crisis. In the last earnings call, management said that it was seeing a rise in April orders, especially in North America, as it entered the second quarter.  However, a rise in selling and marketing costs remains a concern. Also, increased employee costs, elevated store and distribution costs, and other costs related to operating amid COVID-19 pose a threat to the margins.

What the Zacks Model Unveils

Our proven model doesn’t conclusively predict an earnings beat for Celsius Holdings this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Celsius Holdings currently has a Zacks Rank #2 and an Earnings ESP of 0.00%. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks With Favorable Combinations

Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season.

Flowers Foods FLO has an Earnings ESP of +4.49% and a Zacks Rank #2.

Inter Parfums IPAR has an Earnings ESP of +31.25% and a Zacks Rank #3.

Estee Lauder EL has an Earnings ESP of +7.28% and a Zacks Rank #3.

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