"SodaStream is aggressively changing strategic course to hitch its wagon to growing its enhanced water category, but the transition is costly and the reward is uncertain, keeping us on the sidelines despite strategic optionality," analyst said.
For its 2014 fourth quarter, Soda Stream reported earnings of 35 cents per share versus 3 cents per share in the year-ago quarter. SodaStream reported earnings of $1.31 for its 2014 fiscal year, down 33 % from $1.96 per share in 2013. It also reported sales of $512 million, down 9.1 % from $563 million in 2013.
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Analysts estimate that the soda company's first quarter of 2015 will see earnings of 27 cents per share, up from 8 cents per share in the first quarter of 2014. The firm also forecasts fiscal earnings of $1.62 per share for 2015.
Deutsche Bank believes that the company's sales are going to fall 13.6% to $442 million in 2015.
SodaStream, formerly Soda-Club Holdings, along with its subsidiaries, is engaged in developing, manufacturing and marketing home beverage carbonation systems and related products.
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."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- SODA's debt-to-equity ratio is very low at 0.10 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.09, which illustrates the ability to avoid short-term cash problems.
- The gross profit margin for SODASTREAM INTERNATIONAL LTD is rather high; currently it is at 55.00%. Regardless of SODA's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, SODA's net profit margin of 7.51% compares favorably to the industry average.
- SODASTREAM INTERNATIONAL LTD's earnings per share declined by 40.8% in the most recent quarter compared to the same quarter a year ago. Earnings per share have declined over the last year. We anticipate that this should continue in the coming year. During the past fiscal year, SODASTREAM INTERNATIONAL LTD reported lower earnings of $1.96 versus $2.09 in the prior year. For the next year, the market is expecting a contraction of 41.3% in earnings ($1.15 versus $1.96).
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed against the S&P 500 and did not exceed that of the Household Durables industry. The net income has significantly decreased by 42.3% when compared to the same quarter one year ago, falling from $16.40 million to $9.46 million.
- You can view the full analysis from the report here: SODA Ratings Report