B. Riley Lowers Earnings Forecast for Celsius Holdings in FY2024

Celsius Holdings, Inc. (NASDAQ:CELH) has recently faced a downward revision in its earnings forecast for the fiscal year 2024. This update came from equity research analysts at B. Riley, who lowered their estimates on November 6th, indicating caution regarding the company's financial performance over the next year.

Updated Earnings Projections

Analyst J. Van Sinderen from B. Riley now projects that Celsius will achieve earnings of $0.59 per share in FY2024, a decline from the previous estimate of $0.65 per share. Currently, B. Riley maintains a "Buy" rating on the stock and has set a target price of $47.00. In contrast, the consensus estimate for Celsius' earnings stands at $0.79 per share for the current year.

Quarterly Performance Overview

Celsius recently reported its quarterly earnings on August 6th, showing a positive outlook by posting earnings of $0.28 per share, surpassing the analysts' expectations of $0.23. The company achieved revenue of $402 million, exceeding the forecasts of $391.07 million. This marks a significant year-over-year revenue increase of 23.4%. A year earlier, the same quarter displayed earnings of $0.17 per share.

Market Analysts' Perspectives

Further evaluations from different research firms have also adjusted their price targets for Celsius. Stifel Nicolaus cut their target from $51.00 to $45.00 while maintaining a "Buy" designation. Similarly, Morgan Stanley reaffirmed its "Equal Weight" rating with a $50.00 price objective on the stock. Additionally, UBS Group also lowered its target from $50.00 to $45.00. Meanwhile, Bank of America made a more substantial reduction, dropping its target from $32.00 to $26.00 along with an "Underperform" rating.

Insider Actions and Ownerships

In terms of insider activity, CEO John Fieldly sold 74,847 shares on September 12th at an average price of $32.80, totaling approximately $2.45 million. Even with this sale, he retains ownership of 1.81 million shares, valued around $59.45 million. Company insiders currently hold about 2.20% of the total shares.

Institutional Investment Trends

Institutional investors have been actively adjusting their positions in Celsius. EverSource Wealth Advisors significantly increased their stake by over 3,100%, acquiring 386 shares valued at $32,000. Other institutions like Beacon Capital Management and S.A. Mason have also made new stakes valued at $40,000 and $30,000, respectively. Currently, institutional investors own approximately 60.95% of Celsius' stock.

Business Overview

Celsius Holdings, Inc. focuses on creating and selling functional energy drinks and nutritional supplements across various international markets, including the U.S., Europe, and Asia-Pacific regions. Their products are often marketed for metabolic acceleration and fat burning, with various flavors available across both carbonated and non-carbonated lines.

Celsius, Earnings, Forecast