SodaStream (NASDAQ:SODA)
SodaStream Earnings
On Wednesday before the market opened, SodaStream announced fourth quarter earnings that crushed expectations and pushed shares higher in the pre-market. The company announced earnings per share to the tune of 71 cents compared to just 13 cents for the period ending last year and analyst expectations of 36 cents. Revenue jumped 17% to $131.8 million that beat analyst expectations of $125.5 million.
SODA attributes its great quarter to the starter kit sales that cranked out over $56 million in sales marking a 37% jump compared to the same period last year. Currently analysts have an average price target of $41.75 but that will most likely be raised over the following days.
SODA Technicals
Looking at the 5-minute chart above you will notice that shares are getting boost in the pre-market with prices currently hitting highs at $51.30 after closing Tuesday at $47.35 marking an 8.3% jump in value. Shares have been on an absolute tear since their last earnings release back in November with a return of over 45%.
Looking for some daily levels we have to go back to 2014 when prices last traded at these levels. $50 is almost always a big level no matter what chart you are looking at and it is no different with this one so keep an eye on the key level along with $55 while support should come in at $48 and Tuesday’s high at $47.50.
Shares will be more volatile than normal as traders will be looking to take advantage of the increased volume and price movements so make sure to keep this one on your radar over the next couple days.
CEO Comments
Daniel Birnbaum, Chief Executive Officer of SodaStream commented:
I am very pleased with the strong momentum we built throughout the year which continued in the fourth quarter with robust revenue growth and record high operating income. Our 2016 full year performance underscores that the strategies we’ve implemented to build a global brand franchise and accelerate household penetration of our home carbonation system are working successfully. Consumers are responding positively to our messaging around health & wellness, convenience, and the environment and are using SodaStream to produce sparkling water in record numbers.
At the same time, we are growing our business in a highly efficient manner following expense optimization efforts and the recent consolidation of our manufacturing, logistics and distribution activities in Israel. This has resulted in an all-time record operating and net income year, strong free cash flow and $57 million in cash and deposits with zero financial debt. There are meaningful growth opportunities still ahead of us and we are committed to consistently deliver increased earnings and shareholder value over the long-term.
Company Profile
SodaStream International Ltd. operates as a holding company, which engages in the development, manufacture, distribution, and marketing of home carbonation systems. Its products include drink maker machines, soda caps, carbonators, reusable carbonation bottles, and flavored syrups. It operates through the following geographical segments: Western Europe; Central and Eastern Europe, Middle East and Africa; The Americas; and Asia-Pacific. The company was founded by Peter Wiseburgh in 1991 and is headquartered in Airport City, Israel.