Why SodaStream Is Tuesday's Big Earnings Winner

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.

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.