Celsius Holdings Inc. (CELH) Surged On Friday: Earnings Beat and Acquisition Announcement Drive Stock Price Up

Celsius Holdings Inc. (CELH), the maker of the popular energy drink CELSIUS, saw its stock price surge on Friday, February 22, 2025, following the company's better-than-expected fourth-quarter earnings report and the announcement of its acquisition of Alani Nu, a rival energy drink brand. The company's stock price jumped 33.6% to $34.11, according to data from Benzinga Pro.

Celsius reported adjusted earnings per share (EPS) of $0.14, beating analysts' estimates of $0.11. The company's revenue also beat analysts' estimates, coming in at $332.2 million compared to the expected $327.97 million. However, revenue decreased by 4% year-over-year, which the company attributed to the negative impact of higher domestic allowances from various programs, including the distributor incentive program.

The company also announced its acquisition of Alani Nu for $1.8 billion, which includes $150 million in tax assets, making the net purchase price $1.65 billion. The acquisition is expected to generate $2 billion in sales and be cash EPS accretive in its first year. John Fieldly, Chairman and CEO of Celsius, stated, "We have deep respect for the strong community of supporters and fans Alani Nu has developed and the authentic brand and partnerships they have formed. Together, we expect to broaden the availability of Alani Nu’s functional products to help more people achieve their wellness goals with great-tasting, functional product options at more moments throughout their lives."



The acquisition of Alani Nu is a strategic move for Celsius, as it expands the company's product portfolio and increases its market share in the energy drink category. The acquisition also aligns with Celsius' long-term growth strategy of expanding its consumer base, broadening its availability, and being the preferred beverage for more occasions.

Celsius' strong earnings report and the acquisition of Alani Nu have led analysts to maintain a strong "Strong Buy" rating for CELH stock. The average price target is $48.94, which represents an increase of 50.03% from the latest price of $34.11. This suggests that analysts expect the stock to continue to rise based on the company's recent developments.



In conclusion, Celsius Holdings Inc. (CELH) surged on Friday following its better-than-expected fourth-quarter earnings report and the announcement of its acquisition of Alani Nu. The company's strong earnings and strategic acquisition have led analysts to maintain a strong "Strong Buy" rating for CELH stock, with an average price target of $48.94. The acquisition of Alani Nu is expected to generate $2 billion in sales and be cash EPS accretive in its first year, further strengthening Celsius' position in the energy drink market.