Sometimes a great earnings report is all a stock needs to surge. For beverage stock Celsius Holdings (NASDAQ:CELH), it was indeed all that was needed. And surge it did; Celsius was up nearly 20% in the closing minutes of Wednesday’s trading session.
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Celsius Holdings indeed had quite a solid round of earnings. The $0.52 it posted in earnings per share was better than double analyst projections that called for $0.24 per share. And, its revenue figures did roughly as well as earnings. It posted $326 million in revenue, which beat analyst projections calling for $277.19 million. Further, that $326 million also handily beat the figures from 2022’s second quarter, as they were 111.7% higher this time than last.
Celsius benefited from several helpful market conditions. First, it had lower costs for packaging and raw materials, which is a thing you hardly ever hear about any more. Second, Celsius improved its waste and scrap figures, making sure it didn’t need to buy much more of that packaging and those raw materials than was strictly necessary. Plus, as cited by John Fieldly, Celsius’ CEO, PepsiCo’s (NASDAQ:PEP) distribution network proved a huge hit in terms of getting Celsius product on shelves. Several new merchandising deals with wholesale operations like Costco (NASDAQ:COST) also helped drive upward momentum.
However, this picture is somewhat marred by insider trading figures out of Celsius Holdings. Insiders sold over $52.7 million worth of Celsius Holdings shares in the last three months. That’s enough to pitch insider confidence figures down into the “Very Negative” category.
