Will Walmart Help SodaStream Fizz to the Top?
SodaStream International (NASDAQ:SODA) announced it will roll out its products at Walmart (NYSE:WMT) stores in the U.S. by the end of May. Following its announcement, shares of SodaStream surged the most on record in New York.
Don’t Miss: This Misstep Crushed Kohl’s Margins.
According to SodaStream CEO Daniel Birnbaum, the company plans to sell two of its products beginning this month at 2,900 Walmart stores across the nation. The plan was revealed after a conference call with analysts on Wednesday after the company reported earnings.
Analysts consider the move advantageous for SodaStream, as Walmart is the world’s largest retailer. According to Monness Crespi Hardt & Co. analyst Jim Chartier, Walmart is a bridge between SodaStream’s current sales at big-box retailers, and supermarkets, where they want to be selling in the future. Undoubtedly, Walmart has very high foot traffic that will help the Isreal-based company sell a lot more machines. Currently, Chartier has a “buy” rating on WalMart.
SodaStream’s first-quarter profit increased to 55 cents per share in the first quarter from 35 cents a year ago, beating the 44 cent median estimates of several analysts. Shares of the Israel-based company increased 26 percent to $36.90 by the close in New York, the sharpest rise since the company’s initial public offering in November 2010.