What happened
Shares of Celsius Holdings (CELH 2.16%) were moving higher today after the energy drink company posted strong results in its third-quarter earnings report.
As a result, the stock was up 12.1% as of 2:11 p.m. ET.
So what
Revenue continued to soar for Celsius, up 98% to $188.2 million in the third quarter, which crushed the analyst consensus at $162 million.
Revenue from the domestic market, which is by far its biggest, jumped 112% to $179.5 million, and gross margin increased from 39.7% to 41.8%, showing it's absorbing higher costs and improving profitability.
Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), meanwhile, jumped 142% to $24.8 million. But the company posted a wide loss reported under generally accepted accounting principles (GAAP) of $2.46 per share due to a one-time expense of $155.4 million for terminating a distributor contract.
The company also touted market share gains following its new distribution agreement with PepsiCo and said it was now the No. 3 energy drink in the country, with 4.9% share.
Now what
Celsius did not issue formal guidance, but recent sales trends indicate strong growth through the fourth quarter as well.
The company said Nielsen data showed sales up 118% year over year in the two weeks ended on Oct. 22, and it's now the second-largest energy drink brand on Amazon with 18% share, ahead of Red Bull but behind Monster.
It also placed an additional 550 coolers in stores across the country as it grows its store distribution.
Celsius won't be able to double its growth year over year forever, but the company still has a long distribution runway to penetrate, and the Pepsi agreement should help the beverage company maximize its growth potential.
