Celsius Holdings (CELH) Q4 Earnings Coming Up: Factors to Note

Celsius Holdings, Inc. CELH is likely to register top-and-bottom-line growth when it reports fourth-quarter 2023 earnings on Feb 29. The Zacks Consensus Estimate for revenues is pegged at nearly $324 million, indicating a jump of 82% from the figure reported in the prior-year quarter.

The consensus mark for earnings has remained unchanged in the past 30 days at 16 cents per share, which indicates a substantial increase from the year-ago quarter’s figure of 1 cent. CELH has a trailing four-quarter earnings surprise of 110.9%, on average.

Factors to Consider

Celsius Holdings has been benefiting from its effective distribution strategies, strong market penetration, product innovation and operational excellence. A continued focus on these areas is likely to have driven the company’s fourth-quarter performance.

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

Incidentally, CELH witnessed solid revenue growth in North America in the third quarter owing to the increased SKU mix and gains related to PepsiCo’s efficient distribution system. The company’s robust expansion in the energy drink category has been working well. Additionally, Celsius Holdings’ strong performance on e-commerce platforms like Amazon is an upside. This reflects impressive consumer demand and effective online marketing strategies.

Celsius Holdings has also been expanding its distribution points across non-traditional channels such as colleges, universities, hospitals, hotels and eateries, which present significant growth opportunities. Apart from this, partnerships with major brands like Dunkin' Donuts and Jersey Mike's bode well.

The company emphasizes its focus on operational efficiency and leverage across its business, leading to improvements in margins. Management expects the fourth-quarter gross margin to come in line with the second-quarter and full-year margin picture.

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for Celsius Holdings this time. 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, which is not the case here.

Celsius Holdings has an Earnings ESP of -4.71%, and it carries a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks With the Favorable Combination

Here are three companies worth considering, as our model shows that these have the correct combination to beat on earnings this time:

The Gap, Inc. GPS currently has an Earnings ESP of +24.44% and sports a Zacks Rank of 1. GPS is likely to register a bottom-line increase when it reports fourth-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for quarterly earnings per share of 19 cents suggests a rise of 125.3% from the year-ago fiscal quarter’s reported number. You can see the complete list of today’s Zacks #1 Rank stocks here.

Gap’s top line is expected to decrease from the prior-year fiscal quarter’s reported number. The consensus estimate for quarterly revenues is pegged at $4.21 billion, suggesting a decline of 0.7% from the prior-year fiscal quarter’s reported figure. GPS has a trailing four-quarter earnings surprise of 137.9%, on average.

Inter Parfums IPAR currently has an Earnings ESP of +7.14% and a Zacks Rank of 2. The company is likely to register a top-line increase when it reports fourth-quarter 2023 numbers. The Zacks Consensus Estimate for Inter Parfums’ quarterly revenues is pegged at $329 million, indicating a rise of 5.9% from the figure reported in the prior-year quarter.

The Zacks Consensus Estimate for Inter Parfums’ quarterly earnings of 35 cents per share suggests a decrease of 50.7% from the year-ago quarter’s levels. IPAR has a trailing four-quarter earnings surprise of 45.7%, on average.

Costco Wholesale COST has an Earnings ESP of +1.58% and a Zacks Rank of 2. COST is likely to register top-and-bottom-line growth when it reports second-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for Costco’s quarterly revenues is pegged at $59.2 billion, suggesting an increase of 7.1% from that reported in the prior-year quarter.

The Zacks Consensus Estimate for Costco’s earnings for the second quarter has advanced by a penny in the past seven days to $3.60 per share, indicating a rise of 9.1% from the year-ago period reported figure. COST delivered an earnings beat of 2.6%, on average, in the trailing four quarters.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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Costco Wholesale Corporation (COST) : Free Stock Analysis Report

The Gap, Inc. (GPS) : Free Stock Analysis Report

Inter Parfums, Inc. (IPAR) : Free Stock Analysis Report

Celsius Holdings Inc. (CELH) : Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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