SodaStream (SODA) Stock Rallies on Strong Q1 Results
NEW YORK (TheStreet) -- SodaStream (SODA) - Get Report stock is advancing 20.91% to $17.81 on heavy trading volume on Tuesday afternoon following the Israeli company's better-than-anticipated financial results for the 2016 first quarter, which were released before today's opening bell.
The home soda-making system manufacturer posted earnings of 40 cents per share for the three months ended March 31, while analysts had estimated earnings of 11 cents per share.
Revenue increased 9.6% year over year to $100.9 million for the quarter, beating revenue estimates of $89 million.
"Our first quarter results demonstrate that our growth plan, which centers on repositioning the SodaStream brand around sparkling water and building a stronger, more efficient organization, has started to take hold," CEO Daniel Birnbaum said in a statement.
Revenue growth was driven by strong European sales where the company changed its advertising tactics, Birnbaum added.
Western Europe sales were up 8% to $62.6 million for the quarter, while sales in the Americas rose 0.1% to $22.9 million.
So far today, 2.38 million shares of SodaStream have been traded, significantly higher than its average daily volume of 192,556 shares.
Separately, SodaStream has a "hold" rating and a letter grade of C- at TheStreet Ratings because of the company's largely solid financial position with reasonable debt levels by most measures and expanding profit margins, which is offset by generally disappointing stock performance, deteriorating net income and disappointing return on equity.
You can view the full analysis from the report here: SODA
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.
