The Trade Desk delivers revenue 28% higher than year earlier.
Celsius posts revenue gain of 37% YoY, beats earnings consensus.
The Trade Desk raises Q2 sales projection.
Celsius Holdings (CELH) and The Trade Desk (TTD) have withstood the onslaught of terrible earnings releases this week. Both stocks have jetted ahead following earnings calls showing their brands executing their strategies with gusto.
Energy drink purveyor Celsius saw its shares rise more than 9% on Thursday, ending the day up more than 6%, while two-sided digital ad marketplace TTD gained a more solemn 3%. This comes after Shopify (SHOP) and Roblox (RBLX) plunged 20% on their respective earnings announcements this week, as well as other stocks facing disgruntled traders post-earnings like Rivian (RIVN), AirBNB (ABNB), Uber Technologies (UBER), Palantir (PLTR) and Disney (DIS).
The Dow Jones Industrial Average gained 0.85%, while the S&P 500 advanced 0.51%, and the NASDAQ closed 0.27% higher.
Celsius beat its Q1 GAAP earnings per share (EPS) forecast by 8 cents when it arrived at $0.27, which was more than double per-share earnings a year prior.
Revenue was the deal-breaker as it arrived more than $34 million below consensus. However, sales of $355.7 million still rose 37% from a year earlier, and the initial pullback transitioned into gains for the stock on Thursday.
The primary issue is that Celsius’ most significant distributor, Pepsi (PEP), is reducing its inventory of the company’s energy drinks. The change seems to be in line with Pepsi’s strategy of reducing its days of inventory for many of the third-party products that it distributes.
TD Cowen analyst Robert Moskow says the inventory change will temper sales this year, but strong demand should lessen the burden.
Celsius currently has an 11.5% market share of the energy drink space in the US, and even pessimistic analysts from Morgan Stanley see this reaching 15% or more.
The Trade Desk added to its long, nearly spotless record of earnings beats late Wednesday. The platform’s $0.26 in adjusted EPS beat Wall Street expectations by 4 cents. Revenue of more than $491 million bested consensus by nearly $11 million and presented a 28% increase from a year prior.
Piper Sandler analyst Matt Farrell wrote that, “Not only does [connected TV] remain the fastest growing channel for Trade Desk, but the company continues to announce partnership agreements that demonstrate the strength of the platform.”
Those new partnerships or expanded partnerships include Comcast (CMCSA), Roku (ROKU) and Disney.
Management also raised guidance for Q2 from consensus of $567 million in revenue to $575 million.
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