Shares of SodaStream were up more than 8.6% in morning trade after the company reported earnings and revenue that beat estimates.
In the second quarter, the company earned $US0.43 per share, better than the $US0.31 that was expected by analysts, on revenue of $US141.2 million, topping the $US140.6 million Wall Street expected.
“The second quarter was highlighted by record gas refills including unit growth in all regions underscoring the global appeal and stickiness of our home carbonation system. Our total business in our Western Europe, Asia Pacific, and CEMEA regions all posted solid increases in the second quarter as our product and marketing strategies are leading to increased household penetration and user activity.” said Daniel Birnbaum, Chief Executive Officer of SodaStream.
SodaStream, however, said it is lowering its U.S. sodamaker projections for the second half of the year.
Birnbaum said: “In the U.S., soda maker volumes remained under pressure as we struggled to drive consumer demand and retailers worked through excess inventory carried over from the holiday season. We are lowering our U.S. soda maker sales projections for the back half of the year while we reposition our brand behind health & wellness and refine our product line and marketing message to better promote this important consumer benefit. We are confident this strategy will have a positive long-term impact on our U.S. performance. Our revised plan for 2014 also includes operating expense reductions aimed at protecting profitability until growth trends improve.”
SodaStream, which is one of the most heavily shorted stocks in the market, last week saw shares explode after a report from Bloomberg said the company was in talks with an investment firm to go private.