Core Viewpoint - Celsius Holdings has experienced a significant stock price surge following a better-than-expected fourth-quarter earnings report and the announcement of a $1.8 billion acquisition of Alani Nutrition LLC, raising questions about the sustainability of this growth amidst underlying challenges [1][2][12]. Financial Performance - The fourth-quarter revenue for Celsius was reported at $332.2 million, exceeding the consensus estimate of $326.07 million, but reflecting a 4% decrease compared to the same quarter in 2023 [2][3]. - Adjusted diluted earnings per share (EPS) reached $0.14, surpassing analyst expectations of $0.11, while gross margin improved to 50.2%, up from 47.8% in the fourth quarter of 2023 [4][5]. Acquisition Details - Celsius announced a definitive agreement to acquire Alani Nutrition LLC for $1.8 billion, which is expected to enhance its position in the functional beverage sector [7][8]. - The acquisition is projected to create a combined sales base of around $2 billion and command approximately 16% of the total energy drink market [9]. - Celsius anticipates $50 million in run-rate cost synergies within two years from the acquisition [10]. Market Position and Strategy - The acquisition of Alani Nu is seen as a strategic move for market share expansion, particularly targeting the female consumer demographic [9]. - The deal is valued at less than three times Alani Nu's trailing revenue and approximately 12 times its trailing adjusted EBITDA, indicating a reasonable price tag [11]. Future Outlook - Analysts have set a 12-month stock price forecast for Celsius at $47.67, suggesting a potential upside of 51.95% [12]. - Key metrics to monitor include quarterly revenue growth and market share data to assess the impact of the Alani Nu acquisition and the resolution of inventory challenges with PepsiCo [19].

Core Viewpoint - Celsius Holdings Inc reported better-than-expected fourth-quarter earnings and announced the acquisition of Alani Nutrition for $1.8 billion, which is expected to enhance growth and market share in the energy drink sector [1][9]. Financial Performance - Celsius surpassed expectations for sales, adjusted EBITDA, and EPS in the fourth quarter, with North American sales declining by 6% while international sales increased by 39% [5]. - The acquisition of Alani Nu is valued at a revenue multiple of less than 3x for 2024, financed through $1.275 billion in cash and $500 million in stock, with a potential $25 million earnout tied to 2025 performance [2][9]. Market Position and Strategy - Post-acquisition, Celsius's market share in the U.S. energy sector is expected to rise from approximately 11.8% to 16%, surpassing the double-digit threshold [3][7]. - The acquisition is strategically significant as Alani is one of the fastest-growing energy brands, enhancing Celsius's appeal to female consumers [3][8]. Analyst Sentiment - Analysts have reiterated Buy ratings on Celsius shares, with price forecasts ranging from $37.00 to $49.00, reflecting optimism about the acquisition and stronger-than-expected earnings [4][5][8]. - The deal is anticipated to boost Celsius's sales and adjusted EBITDA by approximately 50% in 2026, assuming $50 million in run-rate synergies and a 28% average adjusted EBITDA growth in 2025-2026 [10][11]. Competitive Landscape - The energy drink sector remains competitive, with major rivals focused on increasing market share amid a challenging consumer environment [6]. - Celsius aims to attract new customers, expand product availability, and enhance consumption frequency through retail activations and product innovation [6].

Core Insights - The article discusses the potential for investing in undervalued stocks that are mispriced by the market as of the end of February [1] Group 1 - The article suggests that investors may consider joining a platform that provides insights on undervalued stocks [1]

The term roller coaster ride might be overly used, but there's no better way to describe the last year for Celsius Holdings (NASDAQ: CELH ).I aim to invest in companies with perfect qualitative attributes, buy them at an attractive price based on fundamentals, and hold them forever. I hope to publish articles covering such companies approximately 3 times per week, with extensive quarterly follow-ups and constant updates.I manage a concentrated portfolio targeted at avoiding losers and maximizing exposure to ...

Group 1 - The article discusses the positions held by Travis Hoium in Celsius and mentions that The Motley Fool also has positions in and recommends Celsius [1] - It highlights that The Motley Fool has a disclosure policy regarding its affiliations and potential compensations [1] - The opinions expressed in the article are stated to be independent and unaffected by The Motley Fool's financial interests [1]

Shares of Celsius Holdings (CELH 30.06%) were on the rebound today, jumping after the company reported better-than-expected earnings results and said it would acquire Alani Nu, another energy drink maker, for $1.8 billion.As of 10:39 a.m. ET on Friday, the stock was up 23.4% on the news. Celsius has good news to shareCelsius rushed to get its earnings report out ahead of an upcoming conference, and now investors have a chance to see why.The energy drink maker reported another quarter of declining sales as i ...

Core Viewpoint - Celsius Holdings has made a significant acquisition of Alani Nu for $1.8 billion, which is expected to revitalize its growth trajectory after a challenging year [1][2]. Financial Performance - Celsius experienced a respectable recovery in the fourth quarter, with a 4% decline in revenue compared to a shocking 31% year-over-year decline in the previous quarter [10]. - The acquisition of Alani Nu is seen as a strategic move to enhance growth, especially after Celsius faced back-to-back quarters of declining revenue [3][10]. Acquisition Details - The deal involves $1.275 billion in cash, an additional $25 million contingent on Alani Nu's performance in 2025, and $500 million in new Celsius shares for Alani Nu stakeholders, bringing the net price to $1.65 billion [5]. - The acquisition values Alani Nu at 3 times its projected 2024 sales and 12 times its last year's EBITDA, which is favorable compared to Celsius's own multiples [5]. Market Position and Strategy - Alani Nu primarily targets a female audience and offers a range of products including protein shakes and dietary supplements, which could diversify Celsius's product offerings [4]. - The acquisition is expected to leverage Celsius's existing distribution channels, particularly through its minority shareholder PepsiCo, to enhance Alani Nu's profitability [6]. Historical Context - The article draws a parallel with Crocs' acquisition of Heydude, which initially seemed promising but did not yield the expected growth, highlighting the risks associated with such acquisitions [6][8]. - Celsius aims to avoid the pitfalls experienced by Crocs and is optimistic about the potential synergies and growth opportunities from the Alani Nu acquisition [9][11].

Shares of the third-largest energy drink brand in the United States, Celsius (CELH 32.35%), were up 44% this week as of 11 a.m. ET Friday, according to data provided by S&P Global Market Intelligence.While the company reported acceptable fourth-quarter results on Thursday, its announcement of a significant acquisition stole the show and led to a skyrocketing price.Much ado about Alani Nu?In an excellent move to divert attention from somewhat turbulent 2024 results, Celsius announced that it had acquired Ala ...

Celsius Holdings Inc (NASDAQ:CELH) is on track for its largest percentage gain since November 2020, last seen up 26.9% at $32.40. The energy drink company reported adjusted fourth-quarter earnings of $0.14 per share on $332 million in revenue, topping analyst expectations.Investor enthusiasm was further fueled by Celsius’ announcement of a $1.8 billion cash-and-stock acquisition of rival Alani Nutrition, a move that strengthens its position in the energy drink market.Options traders are piling on, with more ...

Celsius is acquiring its main competitor, Alani Nu.In this video, I will cover Celsius's (CELH 24.75%) recent earnings report and explain why I believe the acquisition of Alani Nu makes sense. Watch the short video to learn more, consider subscribing, and click the special offer link below.*Stock prices used were from the trading day of Feb. 20, 2025. The video was published on Feb. 20, 2025. ...