SodaStream (SODA) Shares Sell Off Following Strong Q4, Outlook... Profit Taking or Growth Concerns?
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SodaStream (Nasdaq: SODA) shares are getting hit hard Wednesday despite what would appear on the surface to be a decent quarterly report for the company.
Fourth-quarter 2011 revenue came in at $85.688 million. Net income was $5.32 million, or 26 cents per share. Excluding a share-based compensation expense and the discontinued management fees, adjusted EPS came in at 32 cents.
For the same period last year, revs were $66.3 million and earnings were reported at 33 cents per share. The two numbers may not be comparable due to currency conversions from the euro to U.S. dollar.
The Street was expecting revs of $62.95 million and earnings of 11 cents per share.
"Our U.S. business experienced strong growth in 2011 driven by our launch of new products, retail expansion, and ramped up marketing efforts, including our first TV commercial," CEO Daniel Birnbaum stated. "The U.S. is now our largest single market with sales growth at 104 percent for the year, unit sales of soda makers up 113 percent and CO2 refills and flavors up 98 percent and 132 percent, respectively."
Gross margin improved from 54.3 percent in last year's fourth quarter to 57.3 percent, in part due to the increase in U.S. sales.
Of note, SodaStream also said it would translate all future quarterly reporting, starting with the next period, into U.S. dollars and the U.S. dollar will be the standard from now on. The company also said "in accordance with IFRS, the financial statements for comparative periods will be translated (restated) into the new reporting currency using the exchange rate as of January 1, 2012."
Looking ahead, SodaStream sees 2012 adjusted net income increasing 35 percent from $32.9 million reported for fiscal 2011. Revenue should gain 28 percent from $289 million reported last year, or to about $370 million.
Maybe investors are thinking that growth has peaked or input costs will continue to rise for SodaStream. Or maybe many are taking some profit following the recent 23 percent rise in the stock over the last week.
Shares are off nearly 16 percent to just about the same level the stock was at in February/March of last year.
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Fourth-quarter 2011 revenue came in at $85.688 million. Net income was $5.32 million, or 26 cents per share. Excluding a share-based compensation expense and the discontinued management fees, adjusted EPS came in at 32 cents.
For the same period last year, revs were $66.3 million and earnings were reported at 33 cents per share. The two numbers may not be comparable due to currency conversions from the euro to U.S. dollar.
The Street was expecting revs of $62.95 million and earnings of 11 cents per share.
"Our U.S. business experienced strong growth in 2011 driven by our launch of new products, retail expansion, and ramped up marketing efforts, including our first TV commercial," CEO Daniel Birnbaum stated. "The U.S. is now our largest single market with sales growth at 104 percent for the year, unit sales of soda makers up 113 percent and CO2 refills and flavors up 98 percent and 132 percent, respectively."
Gross margin improved from 54.3 percent in last year's fourth quarter to 57.3 percent, in part due to the increase in U.S. sales.
Of note, SodaStream also said it would translate all future quarterly reporting, starting with the next period, into U.S. dollars and the U.S. dollar will be the standard from now on. The company also said "in accordance with IFRS, the financial statements for comparative periods will be translated (restated) into the new reporting currency using the exchange rate as of January 1, 2012."
Looking ahead, SodaStream sees 2012 adjusted net income increasing 35 percent from $32.9 million reported for fiscal 2011. Revenue should gain 28 percent from $289 million reported last year, or to about $370 million.
Maybe investors are thinking that growth has peaked or input costs will continue to rise for SodaStream. Or maybe many are taking some profit following the recent 23 percent rise in the stock over the last week.
Shares are off nearly 16 percent to just about the same level the stock was at in February/March of last year.
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