SodaStream (SODA) seems to have a knack for confusing the Street, and its latest release was no different. The company recently reported its fourth-quarter and full-year results, with shares initially selling off after hours and marginally rising by market close. In the following video, the Fool's Blake Bos looks at those earnings and breaks out the details that are the most important for shareholders.
Breaking down the numbers
Revenue was up 26.4% in the fourth quarter compared with last year, and up 29% for the full year to $562 million. Company profits were less than stellar, as earnings before interest, taxes, depreciation, and amortization were down 45% in the fourth quarter compared with last year and up 13% for the full year to $62.2 million. SodaStream expects 2014 revenues to increase by 15%.
Last year started off with a bang for SodaStream, but as the fourth-quarter results show, the year ended with a dull thud. While the company was able to grow its revenue, a challenging holiday season forced the company to decide to either pursue profitably or to aggressively grow its installed base. The company chose the latter, repackaging 600,000 SodaStreams for promotions and biting the profitability bullet.
Please be a better 2014
After such a manic 2013 for shareholders, one can only hope 2014 will be a more rewarding year. The coming year will be anything but boring for SodaStream, and there are several areas investors need to keep an eye on. In the following video below, Blake covers all of these areas, which include problems in Japan, new product reveals in March, Chinese expansion, new factories, and more.
If you have any questions or comments, leave a comment below or message Blake via social media.
