Last Thursday, Israel-based SodaStream (SODA) announced Wall Street-smashing earnings results, sending the company's stock soaring. On Monday, shares of the personal appliance company fell more than 3.5%.
But this is not proof that the company will continue downward; rather, investors should consider the stock. SodaStream shares fell 3.51% in Monday trading.
For the third quarter, SodaStream reported earnings of 69 cents per share, far surpassing analysts' consensus estimates of 23 cents per share. And when it came to revenue, SodaStream also exceeded Wall Street's expectations, clocking a sales rise of 12.9%, to $124.2 million, versus analysts' forecast of $116.5 million.
SodaStream's earnings before interest, taxes, depreciation, and amortization (EBITDA) also soared, gaining 140.6%, to $23.3 million. In the third quarter of 2015, this figure clocked in at only $9.7 million.
"Our top-line performance included a 23% increase in sparkling water maker unit sales, to 788,000, our highest quarterly figure in nearly two years," said CEO Daniel Birnbaum. "During the third quarter, our home carbonation system was used to produce and consume more sparkling water than any other brand worldwide, which resulted in an all-time quarterly record 7.7 million gas refills."
SodaStream produces machines, accessories, and flavoring syrups so that consumer can make gourmet sparkling drinks at home. These products were originally marketed as "do it yourself soda" makers. However, during the last few years, it's been nearly impossible to make headway in the soda industry because of changing tastes and increased competition. SodaStream has had to rethink its marketing.