Why Celsius Holdings Stock Was Soaring Today

Core Insights - Celsius Holdings shares surged 23.4% following the announcement of better-than-expected earnings and the acquisition of Alani Nu for $1.8 billion [1][4] Financial Performance - The company reported a 4% decline in revenue for the fourth quarter, totaling $332.2 million, which exceeded the consensus estimate of $327 million [3] - Gross margin improved from 47.8% to 50.2%, indicating positive business momentum [3] - Adjusted earnings per share decreased by 18% to $0.14, surpassing estimates of $0.10 [3] Acquisition Details - Celsius is acquiring Alani Nu for a net price of $1.65 billion after accounting for $150 million in tax assets, paying less than three times trailing revenue and about 12 times trailing adjusted EBITDA [4] - Alani Nu is the fourth-largest energy drink maker and offers a complementary portfolio of shakes and snacks, enhancing Celsius' product line [5] - The combined market share of Celsius and Alani Nu will be 16% in the energy drink industry [5] Market Context - Despite challenges with the PepsiCo distribution deal, Celsius has shown strong retail growth, with a 22% increase last year according to market researcher Circana [7] - The stock price had been under pressure, making the acquisition news particularly impactful [7]