Update (4:10 p.m.): Updated with closing price, day high and low prices, price change and volume information.
NEW YORK (TheStreet) -- SodaStream International (SODA) plummeted to a new one-year low of $36.84 on Monday after the company announced that it has lowered its fiscal 2013 forecast. The stock fell 25.8% to $37.02 at the close of the trading day, down $12.87 from its previous closing price of $49.89.
The company had a low of $36.84 and a high of $41.62 for the day and also has a one-year high of $77.80. On Monday, SodaStream had a volume of 10,503,245, more than 10 times greater than its average volume of 913,927.
The Israeli company announced in its preliminary 2013 results that it hit all-time record sales in the fiscal year but failed to deliver on profit targets and suffered a disappointing fourth quarter. SodaStream now expects revenue of approximately $562 million, adjusted net income of approximately $52.5 million and net income of approximately $41.5 million. The company's previous outlook calculated revenue of $567 million and net income of $54 million.
"These preliminary results reflect a challenging holiday selling season in the U.S. and several factors, mostly from the second half of the quarter that negatively impacted our gross margin," said SodaStream CEO Daniel Birnbaum in the statement. "These include lower sell-in prices and higher product costs, a shift in product mix versus plan, and unfavorable changes in foreign currency exchange rates.
"While we expect some of these headwinds to continue into the first half of 2014, we are moving quickly to implement the necessary measures to restore margins to historical levels in the coming year. We remain confident that despite this setback, we will continue to profitably expand our share of the global carbonated beverage category and are on the right path to meet our long-term goals."
The company recently partnered with actress Scarlett Johansson, who will appear in a SodaStream commercial during Super Bowl XLVIII on Sunday, Feb. 2.
TheStreet Ratings team rates SODASTREAM INTERNATIONAL LTD as a Buy with a ratings score of B-. The team this to say about their recommendation:
"We rate SODASTREAM INTERNATIONAL LTD (SODA) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, expanding profit margins and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Despite its growing revenue, the company underperformed as compared with the industry average of 29.4%. Since the same quarter one year prior, revenues rose by 28.5%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- SODA's debt-to-equity ratio is very low at 0.06 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 1.02, which illustrates the ability to avoid short-term cash problems.
- SODASTREAM INTERNATIONAL LTD' earnings per share from the most recent quarter came in slightly below the year earlier quarter. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, SODASTREAM INTERNATIONAL LTD increased its bottom line by earning $2.09 versus $1.34 in the prior year. This year, the market expects an improvement in earnings ($2.59 versus $2.09).
- Net operating cash flow has increased to $4.95 million or 13.75% when compared to the same quarter last year. Despite an increase in cash flow of 13.75%, SODASTREAM INTERNATIONAL LTD is still growing at a significantly lower rate than the industry average of 73.89%.
- The gross profit margin for SODASTREAM INTERNATIONAL LTD is rather high; currently it is at 56.49%. 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 11.34% compares favorably to the industry average.
- You can view the full analysis from the report here: SODA Ratings Report