Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: SodaStream International (SODA) shares were popping bottles today, flying up as much as 16% after soaring past earnings estimates once again.
So what: SodaStream is roaring again after shares had faded in recent weeks following the dissipation of a buyout rumor. Adjusted per-share profits jumped to $0.74, cruising past estimates at $0.67, while revenue jumped 26% to $132.4 million. That also topped expectations of $129.6 million. Sales growth was nearly even between base units and consumables, helping to hush the nagging naysayers who insist the product is a fad soon to be gathering dust in the attic. The countertop soda maker also boosted full-year estimates, saying it now expects revenue to rise 30% to $567.2 million, better than analyst expectations of $558 million. The company also raised EPS guidance, but did not give exact figures.
Now what: With 35% of shares sold short, SodaStream continues to taunt the doubters, beating estimates nearly every earnings report. The company noted that distribution in Wal-Mart stores had further helped drive demand, and its partnership with the world's biggest retailer should continue to pay dues in the quarters to come. SodaStream is a personal holding of mine, and I see little reason to bet against it, as the market seems to consistently underestimate the popularity of the at-home soda machines. Look for more reports like this in the future.
Editor's note: A previous version of this article misstated the percentage of shares sold short. The Fool regrets the error.
