SodaStream (SODA) Beats Earnings; Misses Sales in Q3

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SodaStream International Ltd. 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.

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

SodaStream is thus pursuing a global restructuring and growth plan. The company is repositioning itself as a water brand under its health and wellness strategy and making significant changes in its growth initiatives to turn around the business.

Investors should also note that SODA has not seen any earnings estimate revision for some time. However, the stock does have a decent history in earnings season. SODA delivered positive earnings surprise in two out of the past four quarters, bringing the average positive earnings surprise to 143.97%.

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 21 cents/share, and the company reported EPS of 22 cents instead. Investors should note that these figures take out stock option expenses.

Revenues: SODA reported revenues of $110.0 million. This missed our consensus estimate of $114 million.

Key Stats to Note: Adjusted operating income was $5.5 million, less than $8.9 million in the quarter.

Stock Price: Shares rose 1.5% during pre-market trading.

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

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