Celsius Holdings, a beverage maker, saw its shares surge by 27% on Friday after reporting record full-year revenue and announcing the acquisition of rival energy drink brand Alani Nutrition for $1.65 billion.
The company’s fourth-quarter revenue reached a record $332.2 million, beating analyst expectations of $326 million. Adjusted earnings per share also topped forecasts at 14 cents, compared to 11 cents predicted by analysts polled by LSEG.
The acquisition of Alani Nutrition is expected to combine the two brands and create a leading “better-for-you” lifestyle platform. However, some analysts remain cautious about the deal’s potential impact on sales growth.
Truist analyst Bill Chappell noted that the combined brands will target the same audience, potentially leading to slower growth for Celsius in the next few quarters. Morgan Stanley analyst Eric Serotta expressed similar concerns, citing weak retail sales and consumer overlap between the two brands.
A short squeeze may also be contributing to the stock’s surge, as investors who sold shares short are forced to cover their bets. Despite this, analysts remain wary of the deal’s medium-term prospects due to the company’s struggles with expansion in recent years.
Source: https://www.cnbc.com/2025/02/21/energy-drink-stock-celsius-pops-more-than-30percent-on-big-quarterly-results-alani-nu-acquisition.html