PresentationUnknown Analyst Good afternoon. Again, it's now my pleasure to welcome Celsius Holdings back to the CAGNY stage. Before I get started, please join me in thanking Celsius for their generous sponsorship of the conference with their beverages all week. Struggling to read this a little bit because it's been a long day, and I'm a little tired. So might as well get this kicked off right. I feel much, much better. Celsius manages one of the most exciting portfolios in beverages, which is anchored by r ...

Celsius (NasdaqCM:CELH) 2026 Conference February 19, 2026 05:00 PM ET Company ParticipantsEric Hanson - President and COOJohn Fieldly - Chairman and CEOKyle Watson - Chief Brand OfficerNone - Video NarratorModeratorGood afternoon, again. It's now my pleasure to welcome Celsius Holdings back to the CAGNY stage. Before I get started, please join me in thanking Celsius for their generous sponsorship of the conference with their beverages all week. Struggling to read this a little bit because it's been a long d ...

Core Viewpoint - Wall Street anticipates a year-over-year increase in earnings for Celsius Holdings Inc. (CELH) due to higher revenues, with actual results being crucial for stock price movement [1] Earnings Expectations - The consensus EPS estimate for Celsius is $0.19 per share, reflecting a year-over-year increase of +35.7% [3] - Expected revenues are $638.18 million, which is a significant increase of 92.1% from the previous year [3] Estimate Revisions - The consensus EPS estimate has been revised 0.59% higher in the last 30 days, indicating a positive reassessment by analysts [4] - The Most Accurate Estimate for Celsius is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +6.46% [12] Earnings Surprise Prediction - A positive Earnings ESP is a strong indicator of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [10] - Celsius currently holds a Zacks Rank of 3, suggesting a likelihood of beating the consensus EPS estimate [12] Historical Performance - In the last reported quarter, Celsius exceeded the expected earnings of $0.28 per share by delivering $0.42, resulting in a surprise of +50.00% [13] - Over the past four quarters, Celsius has beaten consensus EPS estimates three times [14] Industry Context - In contrast, Medifast (MED), a competitor in the Zacks Food - Miscellaneous industry, is expected to report a loss of $0.76 per share, indicating a year-over-year change of -860% [18] - Medifast's expected revenue is $70.81 million, down 40.5% from the previous year [18]

Core Viewpoint - Celsius Holdings has announced the appointment of Christy Jacoby and John Short to its Board of Directors [1] Group 1 - Christy Jacoby and John Short have been appointed to enhance the leadership and governance of Celsius Holdings [1]

Core Insights - Celsius Holdings, Inc. (NASDAQ:CELH) is recognized as a strong investment opportunity in the FMCG sector, with analysts expressing positive outlooks on the company's stock performance [1][2]. Group 1: Analyst Ratings and Price Targets - Piper Sandler raised its price target for Celsius Holdings to $65 from $61, maintaining an "Overweight" rating, indicating confidence in the company's ability to exceed Q4 2025 estimates [1]. - JPMorgan increased its price target for Celsius Holdings to $77 from $68, also keeping an "Overweight" rating, highlighting potential upside in forecasts and valuation multiples [2]. Group 2: Company Performance and Market Position - Analysts believe that 2026 will be a favorable year for Celsius Holdings due to its category leadership and the expansion of its partnership with PepsiCo [2]. - The company is actively involved in the development, processing, manufacturing, marketing, selling, and distribution of functional energy drinks, positioning itself well within the market [3]. Group 3: Competitive Landscape - While Celsius Holdings shows promise, there are suggestions that certain AI stocks may offer greater upside potential with less downside risk, indicating a competitive investment landscape [3].

Industry Overview - The Zacks Food-Miscellaneous industry is facing challenges due to cautious consumer spending and persistent cost pressures, impacting volume growth and pricing flexibility [1][4] - Companies in this industry manufacture and sell a variety of food products, including cereals, sauces, and organic items, primarily through wholesalers and retailers [3] Current Trends - Consumer behavior is shifting towards value-oriented purchasing, with increased demand for private-label and lower-priced alternatives, affecting branded food manufacturers [4] - Elevated costs in raw materials, labor, and logistics continue to pressure margins, despite some pricing actions providing partial relief [5] - Health-focused innovation and portfolio modernization are key growth drivers, as consumers show interest in functional and premium food products [2][6] Performance Metrics - The Zacks Food-Miscellaneous industry currently ranks 187, placing it in the bottom 23% of over 250 Zacks industries, indicating dull near-term prospects [7][8] - The industry has underperformed the S&P 500, declining 11.6% over the past year compared to the S&P 500's growth of 17.3% [10] - The industry is trading at a forward P/E of 15.02X, lower than the S&P 500's 23.24X and the sector's 17.27X [13] Company Highlights - **Mama's Creations**: This company benefits from strong demand for premium meal solutions, with a Zacks Consensus Estimate for EPS rising 18.2% to 13 cents, indicating 44.4% growth year-over-year [16][17] - **J&J Snack Foods**: With a diversified portfolio, this company has seen its EPS estimate rise by a penny to $4.46, suggesting 4.5% growth from the previous year [19][20] - **Sysco Corporation**: This global distributor is focusing on productivity and supply-chain optimization, with an EPS estimate increase of 0.7% to $4.59, indicating 2.9% year-over-year growth [23][24] - **Celsius Holdings**: This company has a strong multi-brand portfolio and has seen its EPS estimate rise by a penny to $1.49, suggesting 18.8% growth year-over-year [27][28]

Core Insights - The Consumer Staples sector is gaining investor attention as a defensive stronghold amid macroeconomic uncertainty, benefiting from steady demand for essential products [1] - Despite higher interest rates and cautious consumer sentiment, staple consumption remains stable, allowing companies to sustain revenue visibility and cash flow generation [2] - The sector is expected to see a revenue increase of 2.4% while the bottom line is projected to decline by 2.4% this earnings season [3] Key Trends Shaping the Season - Consumer staple companies face challenges from elevated input costs, changing consumer preferences, and increased pricing sensitivity due to tariffs and trade-related levies [4] - Companies are mitigating these challenges by diversifying sourcing, localizing production, and renegotiating supplier contracts, which have stabilized cost structures and improved margin predictability [5] - Pricing discipline and a favorable product mix are crucial for offsetting cost pressures, with companies leveraging brand strength and innovation to protect demand and support profitability [6] Earnings Outlook - Defensive demand, manageable tariff-related pressures, and continued cost discipline position select consumer staple stocks to potentially surpass earnings estimates this season [7] - The Hershey Company (HSY) is well-positioned with strong brand equity, disciplined pricing, and ongoing productivity initiatives, with an Earnings ESP of +0.78% and a Zacks Rank 1 [10][11] - Estee Lauder Companies (EL) is focused on restoring sustainable growth through brand prioritization and innovation, with an Earnings ESP of +6.62 and a Zacks Rank 2 [12][13] - Celsius Holdings, Inc. (CELH) is driving demand through innovation and strategic partnerships, with an Earnings ESP of +15.27% and a Zacks Rank 3 [14][15] - Monster Beverage Corporation (MNST) benefits from global energy drink expansion and strong consumer connections, with an Earnings ESP of +17.16% and a Zacks Rank 3 [16][17]

Group 1 - Celsius Holdings, Inc. reported consolidated revenue of approximately $725 million for Q3 2025, reflecting a 173% year-over-year increase [2] - The company has been named PepsiCo's U.S. Strategic Energy Drink Captain, indicating a strong partnership and market positioning [2] - Celsius Holdings announced the integration of Alani Nu into PepsiCo's distribution network starting December 1, 2025, enhancing its distribution reach [2] Group 2 - JPMorgan raised its price target on Celsius Holdings to $77 from $68, maintaining an Overweight rating, indicating positive expectations for the company's performance [1] - The firm anticipates Celsius will benefit significantly from its partnership with PepsiCo, particularly in 2026 [1] - Celsius Holdings positions itself as a healthier alternative in the energy drink category, which has contributed to its sustained growth and consumer adoption [3]

Group 1 - NewBridge Asset Management's Q4 2025 letter indicates that equity markets continued to rise due to resilient economic growth and solid corporate returns, with large-cap growth outperforming in this quarter [1] - The NewBridge Large Cap Growth Strategy generated a positive return but lagged behind the Russell 1000® Growth Index, with most portfolio companies exceeding quarterly expectations [1] - The contrasting performance of Uber Technologies, Inc. and Tesla, Inc. was highlighted as a significant challenge for the portfolio [1] Group 2 - Celsius Holdings, Inc. has faced challenges since June, with sales growth in the energy drink industry slowing down and brands becoming more promotional to stimulate demand [3] - Despite still growing faster than the category, Celsius Holdings, Inc. has experienced a steep year-over-year growth slowdown, and estimates for its sales and earnings have declined due to PepsiCo's inventory optimization initiatives [3] - The decision was made to exit the portfolio's small position in Celsius Holdings, Inc. due to difficulties in estimating near-term catalysts that could improve investor sentiment [3]

Core Insights - Celsius Holdings, Inc. reported international revenue of $23.1 million for Q3 fiscal 2025, marking a 24% year-over-year increase and contributing to a year-to-date total of $70.6 million, which is up 30% from the same period in 2024 [1][5] Group 1: International Revenue Growth - The growth in international revenue was supported by strong performance in the Nordics and expanding contributions from newer markets such as the U.K., Ireland, France, Australia, New Zealand, and the Benelux region [2][3] - Australia emerged as a notable contributor with performance exceeding expectations due to deeper retail engagement, while European markets are still in foundational stages, focusing on strengthening retailer relationships [4][5] Group 2: Strategic Focus - The company emphasized that its international business is in a build-out phase, prioritizing distribution establishment, brand awareness, and market-specific execution capabilities [3][5] - The health, fitness, and wellness trends driving demand in the U.S. are also resonating in international markets, providing a consistent backdrop for expansion [3] Group 3: Comparison with Peers - Monster Beverage reported double-digit year-over-year international net sales growth, with international results outpacing North America [6] - PepsiCo achieved its 18th consecutive quarter of mid-single-digit organic revenue growth internationally, benefiting from scale and distribution strength [7] - Coca-Cola reported positive international unit case volume growth, highlighting the importance of international markets to its overall growth [8]