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How Celsius Holdings Stock Rose 60.4% Last Month

By Anders Bylund - Dec 8, 2020 at 3:12PM

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The fitness drink maker nearly doubled its sales in the third quarter, leaving Wall Street's estimates far behind.

What happened

Shares of Celsius Holdings ( CELH -8.04% ) gained 60.4% in November, according to data from S&P Global Market Intelligence. The maker of health-conscious fitness beverages delivered a red-hot earnings report on Nov. 12, driving share prices 29% higher the next day alone.

So what

Celsius' third-quarter sales surged 80.4% higher year over year to $36.8 million. Earnings according to generally accepted accounting principles (GAAP) doubled to $0.06 per diluted share. Your average analyst would have settled for earnings near $0.02 per share on sales in the vicinity of $33 million.

The business was brisk all around the world, led by a huge 182% increase in European revenue.

A dollar bill, folded origami-style into a charting arrow pointing upward.

Image source: Getty Images.

Now what

The company's results were even more impressive when you consider that they were achieved in the midst of a global shortage of can materials. Celsius is working around the North American can shortage by shipping cans over from its manufacturing facilities in Asia and Europe, but investors should keep an eye on the can shortage over the next few quarters. For now, Celsius hopes to turn this industrywide issue into an advantage, as most beverage makers don't have access to a global network of canning facilities.

"We will have sufficient, ample supply as we head through 2021, but it is an industrywide issue," CEO John Fieldly said in the third-quarter earnings call. "Everyone is going to be dealing with it, which also can be an opportunity for brands that have cans."

Celsius shares have now gained a massive 694% over the last 52 weeks. The stock isn't cheap, but you can't argue with this company's impressive revenue growth.

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Celsius Holdings, Inc. Stock Quote
Celsius Holdings, Inc.
$62.91 (-8.04%) $-5.50

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