Thu Feb 20 20:10:00 UTC 2025: **Celsius Holdings (CELH) Expected to Report Lower Earnings and Revenue in Q4 2024**

NEW YORK, NY – February 15, 2025 – Celsius Holdings, Inc. (CELH) is projected to report declines in both revenue and earnings when it releases its fourth-quarter 2024 results on February 20th. Analysts predict a 5.3% year-over-year revenue drop to $328.97 million, and earnings per share are expected to fall 35.3% to 11 cents. This anticipated downturn follows a significant 31% revenue decline in the third quarter, attributed to inventory adjustments by its main distributor, PepsiCo. While inventory levels are expected to have normalized by the fourth quarter, the company’s heavy reliance on PepsiCo remains a considerable risk factor.

The company’s challenges are further compounded by macroeconomic headwinds and reduced consumer spending on discretionary items. Gross margins also suffered, dropping 440 basis points to 46% in Q3 due to a PepsiCo incentive program aimed at market share expansion, impacting profitability. High sales and marketing expenses, at 37.6% of revenue, continue to be a concern.

Despite these setbacks, Celsius Holdings highlights its commitment to innovation through new product launches and its extensive retail presence. However, Zacks Investment Research notes that its model doesn’t predict an earnings beat for CELH, giving it a Zacks Rank #4 (Sell) and an Earnings ESP of -3.74%.

In contrast, Zacks highlights other companies poised for positive results, including Costco Wholesale (COST), Urban Outfitters (URBN), and Sprouts Farmers Market (SFM), all projected to show growth in both revenue and earnings.

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