Celsius Holdings Inc.’s stock falls after the company reports second-quarter results that miss Wall Street expectations. According to the sources, total revenue rises year over year to $817.9 million, but it comes in below the $872.6 million analyst consensus. Bloomberg and Quartz also point to weakness in sales of Celsius’s flagship, namesake energy drink, with its sales declining versus expectations.
The outlets report that profitability deteriorates alongside the revenue miss. Adjusted earnings per share decline to 36 cents from 47 cents a year earlier and also fall below consensus. ZeroHedge adds that net income drops 45% to $55.3 million and adjusted EBITDA decreases 12%. The company’s gross margin narrows to about 48.1% from 51.5%, with sources attributing margin pressure to factors including promotional activity, channel mix, and aluminum inflation.
Celsius shares reportedly decline sharply in premarket trading, with one source citing a roughly 16% drop. The company says it continues making progress on operations, including completing the Rockstar integration, while operating in a challenging commodity environment.
