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What: SodaStream International
So what: Though fourth-quarter revenue grew an impressive 59% year over year, expenses increased even faster. Compared to the year-ago quarter, net income fell 17% and the share count increased 29%, resulting in an EPS decline of 34%.
Now what: Guidance calls for revenue growth of approximately 25% and net income growth of approximately 40% in 2011. This implies 2011 EPS of roughly 0.79 euros, assuming the share count is relatively stable, compared to a consensus estimate of 1.11 euros. With revenue growth rapidly decelerating, the risk/reward on this recent IPO makes the forward P/E ratio of 48.1 look rich.
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