NEW YORK (TheStreet) -- Shares of SodaStream International (SODA) fell 8.47% to $17.29 in morning trading Wednesday after the home carbonation product manufacturer reported its fourth-quarter earnings.
Adjusted earnings soared to $7.5 million, or 35 cents a share, from $700,000, or 3 cents a share, from the same period one year earlier. This beat the FactSet consensus estimate of earnings of 17 cents a share.
Revenue dropped to $126.5 million from $168.1 million, which missed the FactSet consensus estimate of $127.1 million. The company cited decreased demand for sparkling water makers and flavors in the U.S. during the holiday season.
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Gross margin rose by eight percentage points to 50.4% thanks to significantly lower discounting and promotional activities.
"During the fourth quarter we set a new course for the company that we believe positions SodaStream to take advantage of the rapidly transforming beverage industry," said CEO Daniel Birnbaum in a statement.
"We are confident that repositioning the brand around health & wellness and launching a completely new portfolio of water enhanced flavors fits perfectly with the changing nature of consumer demands and will reaccelerate participation in our home carbonation system," he continued.
Separately, TheStreet Ratings team rates SODASTREAM INTERNATIONAL LTD as a "hold" with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate SODASTREAM INTERNATIONAL LTD (SODA) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, feeble growth in the company's earnings per share and deteriorating net income."
- You can view the full analysis from the report here: SODA Ratings Report