CELH (Celsius) Pre-earnings Analysis
Chart done on daily candles. CELH is set to report earnings this week on Thursday before market open and analysts are eager to see if the company can once again dominate the quarter like they did on their last report. Last quarter, analysts estimated the company would report .16 in EPS, but the company reported .30 instead, about 100% more than expectations. This quarter’s expectations are once again only .18 in EPS, but rising competition and food costs could reflect this time around; this could explain why analysts didn’t raise expectations much for the quarter. Celsius is in a very competitive market and their future is likely fated for a buy-out from giants like Coca-Cola or Pepsi, but until then, they’ll have to keep sales strong to have a chance at long term survival.
Technical analysis:
The stock has rallied since the start of the year and is continuing to make new 2024 highs heading into earnings, which means they’ll need to post very strong earnings for buyers to justify the price near all time highs. This makes these earnings especially dangerous. The options market is currently reflecting an implied volatility reading of 219%, which translates to about a $9.00 move. A straddle could work with a 77C and a 60P, but you’d be risking an implied volatility crush if the stock doesn’t give at least a $9.00 to either side.