Why SodaStream Is Tuesday’s Big Earnings Winner

By Chris Lange Updated Jan 11, 8:05PM EST · Published Aug 1, 9:00AM EDT

Follow 24/7 Wall St. on Google

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

Why SodaStream Is Tuesday’s Big Earnings Winner — © Thinkstock

SodaStream International Ltd. (NASDAQ: SODA) released its fiscal second-quarter financial results before the markets opened on Wednesday. The company said that it had $1.14 in earnings per share (EPS) on $171.5 million in revenue. The consensus estimates had called for $0.73 in EPS and revenue of $149.13 million, and the same period of last year reportedly had EPS of $0.64 on $130.64 million in revenue

During the most recent quarter, revenues were driven by growth in most of the geographic regions, primarily Germany, France, Canada and the United States. Changes in foreign currency exchange rates had a positive impact on revenue of approximately $8.0 million, mainly driven by the strengthening of the euro/U.S. dollar exchange rate compared to the same period last year.

Cash flow from operations less investing activities was $24.4 million in the quarter, compared to $10.8 million last year.

Looking ahead to the 2018 full year, the company expects to see revenue increase about 23% and EPS to increase 31%. The consensus estimates call for $3.56 in EPS and $623.2 million in revenue.

[nativounit]

CEO Daniel Birnbaum commented:

We are extremely pleased to be reporting the most successful quarter in our Company’s history. The product, distribution and marketing initiatives we are executing across our global portfolio of markets continue to propel our business to new heights and strengthen our foundation for future growth. Most notably, sales of sparkling water maker units increased 22% to over 1 million in the second quarter and sales of gas refill units grew 17% to an all-time record 9.7 million. These results underscore the progress we are making towards our primary strategic objectives of expanding household penetration and increasing usage of our home carbonation system. I believe we are now positioned better than ever to drive continued growth and increased shareholder value over the long-term, especially as SodaStream is a great alternative to single-use plastic bottles which are being revealed as a hazard not only to the environment but also to human health.

Shares of SodaStream closed Tuesday at $87.30, with a consensus analyst price target of $99.75 and a 52-week trading range of $49.73 to $98.26. Following the announcement, the stock was up about 20% at $104.68 in early indications Wednesday.

[recirclink id=482872]

[wallst_email_signup]

About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.