Why Is Celsius (CELH) Stock Up Today?

On yet another dramatic down day in the markets, Celsius (NASDAQ:CELH) is a winner thanks to its first-quarter results. Shares of CELH stock are up more than 12% at the time of writing.

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For Celsius, it has been a relatively bumpy year. This stock is down more than 50% from its highs, although shares are still trading at a price-earnings ratio around 1,000. In other words, investors have high expectations for its growth.

It also means that, generally, it is a tough time for companies like Celsius. That’s because higher interest rates have been pushing multiples down. Investors are simply willing to pay less for growth.

That said, Celsius reported its first-quarter earnings today, and investors apparently like what they see. Let’s dive into the numbers and why the market is turning so bullish on this beverage maker.

CELH Stock Surges Following Impressive Earnings

Celsius reported revenue growth of more than 200% year over year, reporting sales of $133.4 million. The company said this came from growth in its traditional channels as well as its direct store delivery network. While this was a huge YOY jump, it did miss estimates for revenue of $144.3 million.

On the bottom line, the company brought in net income of $6.7 million, much higher than the $585,000 in earnings during Q1 2021. Store count growth, cooler growth, and club and vending channel expansion were better than many expected.

Overall, Celsius is an intriguing company. These are some impressive numbers, and there’s certainly some growth to support this valuation. This is a stock that I’m going to keep on my watch list right now, and I’d recommend investors do the same.

On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.


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