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SodaStream (SODA) Beats On Q1 Earnings; Shares Jump

Published 05/09/2016, 09:14 PM
Updated 07/09/2023, 06:31 AM
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SodaStream International Ltd. (NASDAQ:SODA) makes beverage carbonation systems which transforms tap water into soft drinks and sparkling water. SodaStream’s products are primarily sold at major retail stores like Kohl’s, Corp, Macy’s and Bed Bath & Beyond (NASDAQ:BBBY).

The company’s sales figures have been weak in over the past few quarters due to low demand for its products — soda/sparkling water machines and flavored syrups. The carbonated soft drink market is facing troubles as consumers are shifting away from traditional soda toward more natural, water-based beverages containing fewer calories.

Keeping in line with this, SodaStream is pursuing a global restructuring and growth plan. The company is repositioning itself as a water-based brand under a health and wellness plan and making significant changes in its growth strategies to boost business.

As part of the plan, the company rolled out a range of natural water-enhanced flavors in the U.S. and some international markets last year. Also, the company is working on the transformation of its manufacturing base and operating structure – which includes consolidating production under the new Lehavim facility in Southern Israel and closing other legacy facilities – to enhance efficiency.

Investors should also note that SODA has not seen any major earnings estimate revision for some time. However, the stock does have a decent history in earnings season. SODA delivered positive earnings surprise in three out of the past four quarters, bringing the average positive earnings surprise to 138.45%.

Currently, SODA has a Zacks Rank #3 (Hold), but that could definitely change following SodaStream’s earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:

Earnings: SODA beat earnings. Our consensus earnings estimate called for EPS of 15 cents/share, and the company reported EPS of 29 cents instead. Investors should note that these figures take out stock option expenses.

Revenues: SODA reported revenues of $100.9 million. This beat our consensus estimate of $89 million.

Key Stats to Note: Adjusted EBITDA was $12.3 million, up 61.7% year over year. Operating margins rose 390 bps to 7.9%.

Stock Price: Shares rose a massive 11.2% during pre-market trading.

Check back later for our full write up on this SODA earnings report later!



SODASTREAM INTL (SODA): Free Stock Analysis Report

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