Shares of beverage company Celsius (CELH) are down in today’s trading as investors await its Q3 earnings results on November 6 before the market opens. Analysts are expecting earnings per share to come in at $0.03 on revenue of $268.7 million. This equates to 90% and 30.2% year-over-year decreases, respectively, according to TipRanks’ data.
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This decrease can be attributed to a couple of issues. According to TipRanks’ Bulls Say, Bears Say tool, Celsius’ market share appears to be declining. In fact, it fell to 9.3% from 10.7% in early May. In addition, the company’s primary distributor, PepsiCo (PEP), reduced the level of Celsius inventory on hand by $100-$120 million in the third quarter.
As a result, the company’s share price has declined significantly since peaking at almost $100 per share earlier this year, as it currently trades at around $31 per share.
Options Traders Anticipate a Large Move
Using TipRanks’ Options tool, we can see that options traders are expecting a 14.44% move from CELH stock in either direction right after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement.
It is worth noting that Celsius’ after-earnings price moves in the past 13 quarters have mostly been smaller than the 14.44% that is expected. This implies that current option prices might be overvalued. Nevertheless, it is important to remember that the stock did surge over 20% twice during this timeframe. Therefore, anything can happen.
What Is the Stock Price Prediction for CELH?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on CELH stock based on 10 Buys, three Holds, and one Sell assigned in the past three months, as indicated by the graphic below. After a 43% year-to-date decline, the average CELH price target of $47.36 per share implies 53% upside potential.
