SodaStream Earnings Are Out; Now Here Are 3 Things to Watch

SodaStream (NASDAQ: SODA  ) reported its fourth-quarter and end-of-year earnings, and the stock was up a few points on the news, but there are two very different narratives happening at SodaStream at the moment.

The first is the company posting very strong unit sales. Kit sales were up 39%, flavor sales were up 32%, and CO2 canister sales were up 25%. The other side of the coin, however, is that management made some mistakes this quarter. Discounting to gain sales traction on Black Friday became overzealous, and the company also explored other sales avenues such as the Home Shopping Network, a move that also lowered prices. Those discounts translated to some losses for the bottom line. Also, moving a lot of inventory from the U.S., where the company saw lower demand, to other markets meant reconfiguring that inventory for those new markets. With 40% of its sales being reconfigured inventory, the cost of converting that inventory hurt the company as well.

In today's Stock of the Day, Motley Fool analyst Simon Erickson breaks down the company and its prospects. Despite the above managerial gaffes, he still definitely considers the stock a buy, and gives investors three key things to focus on from here. He discusses the importance of a large install base of SodaStream machines with consumers, and he also wants to see more popular flavors introduced. But most important, he wants to see a new way for the company to get its highest-margin item, the CO2 canisters, to consumers directly, so that SodaStream can truly function as an at-home system, rather than sending consumers on trips to the store.

Looking for more growth picks like SodaStream?
They said it couldn't be done. But David Gardner has proved them wrong time, and time, and time again with stock returns like 926%, 2,239%, and 4,371%. In fact, just recently one of his favorite stocks became a 100-bagger. And he's ready to do it again. You can uncover his scientific approach to crushing the market and his carefully chosen six picks for ultimate growth instantly, because he's making this premium report free for you today. Click here now for access.

Read/Post Comments (0) | Recommend This Article (3)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2855553, ~/Articles/ArticleHandler.aspx, 8/31/2015 3:06:24 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Mark Reeth

Mark Reeth is an incredibly handsome Member Liaison, and is an expert on all things Foolish. Follow him on Twitter for all of the most important Fool news.

Today's Market

updated 2 days ago Sponsored by:
DOW 16,643.01 -11.76 -0.07%
S&P 500 1,988.87 1.21 0.06%
NASD 4,828.33 15.62 0.32%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

8/28/2015 4:00 PM
SODA $14.91 Up +0.49 +3.40%
SodaStream CAPS Rating: **