SodaStream | $SODA Stock | Bubbling Up Profits


SodaStream International Ltd. (NASDAQ: SODA)



Shares of SODA surged up Tuesday following positive second quarter results. The company announced Tuesday that profits for the second quarter more than doubled and that sales are experiencing a sharp and rapid increase.


CEO Comments

“Our work repositioning the SodaStream brand around sparkling water and effectively communicating the compelling benefits of our home carbonation system helped drive double-digit revenue growth in each of our four geographic regions,” said CEO Daniel Birnbaum on a call Tuesday morning. The Street Discussing reports of earnings doubling and revenue rising by 17%, CEO Daniel Birnbaum said they “reinforce our confidence in the strategic course we have set”. Mr. Birnbaum said during the conference call that the company expects revenue to increase by a high-single-digit percentage this year after two years of declines. Analysts had been anticipating 6% growth, says Thomson Reuters. Mr. Birnbaum cautioned that the company faces tougher comparisons in the second half, including expected lower sales to distributors in France, the Czech Republic and Korea. Wall Street Journal


Technical Analysis


SODA gapped up in price today 16.35% to $28.25, a $3.97 increase from the previous day’s close. Looking at the chart, we see that this easily marked a new 52-week high and the stock actually has not traded near this range in almost two years. The stock volume today was massive and over 10 times as high at 3.7 million, compared with its average daily volume of 357,000. SODA rose sharply over its 9 exponential moving average in the morning, while eventually settling back down along this key technical indicator.


SodaStream International Ltd. Recent Financials

On Tuesday SodaStream released its 2nd quarter financial results.
Revenue rose by $17.5 million, to $119.2 million, an increase of 17.2% over the $101.7 million recorded in the second quarter of 2015. And net income jumped to $7.8 million, or 37 cents per share, from $3.5 million, or 17 cents per share, in the second quarter of 2015. The Street


Company Profile

SodaStream International Ltd., together with its subsidiaries, develops, manufactures, and sells home beverage carbonation systems. Its home beverage carbonation systems enable consumers to transform ordinary tap water into sparkling water and flavored sparkling water. The company offers sparkling water makers; exchangeable CO2 cylinders; CO2 refills; carbonation bottles; flavors; and other accessories, such as bottle cleaning materials and ice cube trays, as well as distributes Brita water filtration systems in Israel. It markets its products directly; and through individual retail stores, local distributors, and online under the SodaStream and Soda-Club brand names. The company sells its products through approximately 70,000 individual retail stores in 45 countries. SodaStream International Ltd. operates in the Americas; Western Europe; the Asia-Pacific; and Central and Eastern Europe, the Middle East, and Africa. The company was formerly known as Soda-Club Holdings Ltd. and changed its name to SodaStream International Ltd. in March 2010. SodaStream International Ltd. was founded in 1903 and is headquartered in Airport City, Israel. Yahoo Finance