SodaStream International Earnings: Here’s Why the Stock is Falling Now

SodaStream International Ltd. (NASDAQ:SODA) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 6.7%.

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SodaStream International Ltd. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 41.67% to $0.68 in the quarter versus EPS of $0.48 in the year-earlier quarter.

Revenue: Rose 33.83% to $117.6 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: SodaStream International Ltd. reported adjusted EPS income of $0.68 per share. By that measure, the company beat the mean analyst estimate of $0.54. It beat the average revenue estimate of $113.11 million.

Quoting Management: Daniel Birnbaum, Chief Executive Officer of SodaStream, commented, “Our first quarter performance was highlighted by record consumable sales driven by strong gains in several of our largest markets. Growth was led by the U.S., where household penetration and consumer usage continue to expand as evidenced by soda maker, gas refill and syrup unit growth of 78%, 101% and 119%, respectively, versus the same period a year ago. As we head into the summer selling season, we will continue to dedicate resources to support further growth in the U.S. and other key markets. We continue to successfully build our business for the long term through strategic investments in product innovation, demand creation and manufacturing capacity. We believe that this strategy will drive sales and earnings growth and deliver increased shareholder value.”

Key Stats (on next page)…

Revenue decreased 11.55% from $132.95 million in the previous quarter. EPS increased 88.89% from $0.36 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.62 to a profit $0.55. For the current year, the average estimate has moved down from a profit of $2.74 to a profit of $2.47 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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