What: Shares of Sodastream International Ltd. (NASDAQ:SODA) were up 18.6% as of 11:30 a.m. EDT Tuesday after the company reported stronger-than-expected second-quarter 2016 results.
So what: Quarterly revenue climbed 17.2% year over year, to $119.2 million, while adjusted earnings before interest, taxes, depreciation and amortization rose 73%, to $15.4 million. On the bottom line, net income grew 120.8% year over year, to $7.8 million, or $0.37 per share.
Analysts, on average, were only anticipating revenue of $105.7 million, and earnings of $0.21 per share.
Sodastream CEO Daniel Birnbaum added:
Our work repositioning the SodaStream brand around sparkling water and effectively communicating the compelling benefits of our home carbonation system helped drive double digit revenue growth in each of our four geographic regions. Importantly, we advanced our position as the world's largest sparkling water brand with an all-time-record high quarter of 7.5 million gas refills. Our performance also included a sharp acceleration in sparkling water maker sales as our marketing programs aimed at increasing household penetration are resonating with consumers.
More specifically on a geographic basis, sales in Western Europe climbed 14.3% year over year, to $74.4 million, revenue in the Americas rose 12.6%, to $26 million, Asia-Pacific sales increased 42.9%, to $13 million, and sales to Central and Eastern Europe, the Middle East, and Africa grew 31.8%, to $5.8 million.
Broken down by product segment, revenue from sparkling water maker starter kits increased 31.3% year over year, to $39 million, as the company increased kits sold by 146,000, to a total of 637,000. Consumables sales also grew 14.3%, to $78.1 million, while other product revenue declined to $2.1 million from $3.7 million in the same year-ago period.
Now what: With shares already up big so far this year on the heels of last quarter's solid report, which saw SodaStream finally return to year-over-year growth thanks to healthy demand in Europe, this report seems to serve as refreshing confirmation that SodaStream's efforts to refocus its brand around sparkling water are taking hold in a big way. With shares still down more than 60% from their 2013 highs, I see no reason SodaStream can't continue to climb if it can sustain this momentum in the coming quarters.
Steve Symington has no position in any stocks mentioned. The Motley Fool owns shares of SodaStream. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.