SodaStream (SODA) Shares Surge Amid Blow-Out Q3 Report, Raised Guidance
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SodaStream International Ltd. (Nasdaq: SODA) announced Wednesday results for the three month period ended September 30, 2011. Traders are cheering the report this morning, bidding up SodaStream shares by more than 13 percent.
Sales for the third quarter rose 39 percent year over year to $78.431 million as sales of soda makers increased 54 percent and sales of consumables increased 26 percent. The analyst consensus was $54.5 million in total sales.
The cost of products sold rose 47.7 percent to $36.441 million, resulting in a gross profit of $41.99 million. Gross margin for the quarter was 53.5 percent, compared to 56.3 percent for the same period in 2010.
Total operating expenses rose 17 percent year over year to $31.822 million. The increase is largely due to the 26 percent increase in sales and marketing expenses. General and administrative expenses fell 3.6 percent to $7.884 million.
Operating income of $10.168 million totaled 13 percent of total sales, up from the 8 percent it totaled in the third quarter of 2010.
Net income was $10.479 million, or $0.50 per share. Adjusted net income for the quarter was $0.56 per share. The consensus for the quarter was earnings of $0.25 per share.
The company ended the quarter with $35.179 million in cash and cash equivalents as its total assets equaled $296.99 million as of September 30.
For the fourth quarter, Sodastream expects revenue to increase by approximately 24 percent, as compared with fourth quarter 2010 revenue. Net income on an adjusted basis for the fourth quarter of 2011 is expected to be in line with the fourth quarter 2010, reflecting an increase in advertising and promotional expenses to support the rollout of new distribution in the United States during the upcoming holiday season
Management now expects 2011 revenue to increase by approximately 36 percent as compared with 2010 revenue, up from its previous expectation of 30 percent. Net income is now expected to increase by approximately 100 percent as compared with its net income in 2010, up from its previous expectation of 60 percent.
"Our third quarter operating performance was the highest ever in the history of the Company for sales and profitability. This was led by exceptional growth in the Americas, where we sold 267,000 soda makers, growing our installed base through an expanding network of retail partners," commented Daniel Birnbaum, Chief Executive Officer of SodaStream. Mr. Birnbaum continued, "We also saw strong year-over-year growth in France, Italy and the U.K., markets in which we increased our focus, leading to accelerated demand for our product portfolio. As we approach the holiday season in the U.S. we will leverage our increased distribution, along with heightened brand awareness, allocating greater resources to penetrate additional households and capitalize on this large market opportunity."
Sales for the third quarter rose 39 percent year over year to $78.431 million as sales of soda makers increased 54 percent and sales of consumables increased 26 percent. The analyst consensus was $54.5 million in total sales.
The cost of products sold rose 47.7 percent to $36.441 million, resulting in a gross profit of $41.99 million. Gross margin for the quarter was 53.5 percent, compared to 56.3 percent for the same period in 2010.
Total operating expenses rose 17 percent year over year to $31.822 million. The increase is largely due to the 26 percent increase in sales and marketing expenses. General and administrative expenses fell 3.6 percent to $7.884 million.
Operating income of $10.168 million totaled 13 percent of total sales, up from the 8 percent it totaled in the third quarter of 2010.
Net income was $10.479 million, or $0.50 per share. Adjusted net income for the quarter was $0.56 per share. The consensus for the quarter was earnings of $0.25 per share.
The company ended the quarter with $35.179 million in cash and cash equivalents as its total assets equaled $296.99 million as of September 30.
For the fourth quarter, Sodastream expects revenue to increase by approximately 24 percent, as compared with fourth quarter 2010 revenue. Net income on an adjusted basis for the fourth quarter of 2011 is expected to be in line with the fourth quarter 2010, reflecting an increase in advertising and promotional expenses to support the rollout of new distribution in the United States during the upcoming holiday season
Management now expects 2011 revenue to increase by approximately 36 percent as compared with 2010 revenue, up from its previous expectation of 30 percent. Net income is now expected to increase by approximately 100 percent as compared with its net income in 2010, up from its previous expectation of 60 percent.
"Our third quarter operating performance was the highest ever in the history of the Company for sales and profitability. This was led by exceptional growth in the Americas, where we sold 267,000 soda makers, growing our installed base through an expanding network of retail partners," commented Daniel Birnbaum, Chief Executive Officer of SodaStream. Mr. Birnbaum continued, "We also saw strong year-over-year growth in France, Italy and the U.K., markets in which we increased our focus, leading to accelerated demand for our product portfolio. As we approach the holiday season in the U.S. we will leverage our increased distribution, along with heightened brand awareness, allocating greater resources to penetrate additional households and capitalize on this large market opportunity."
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