Why SodaStream (SODA) Stock Is Dropping Before the Bell

NEW YORK (TheStreet) -- SodaStream (SODA) stock is down in pre-market trading after reporting lower year-over-year first-quarter profits and a sharp drop in U.S. sales.

Before the bell, shares had dropped 3.2% to $39.81.

The maker of homemade beverage equipment earned 8 cents a share over the three months to March. In the year-ago quarter, the company earned 57 cents a share. Revenue of $118.2 million nudged 0.5% higher year over year. In the Americas, sales dropped 28% to $34.8 million. 

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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 robust revenue growth, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity."

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