The 10-second takeaway
For the quarter ended Dec. 31 (Q4), SodaStream International beat expectations on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share dropped.
Gross margin expanded, operating margin shrank, and net margin contracted.
SodaStream International reported revenue of $85.8 million. The seven analysts polled by S&P Capital IQ hoped for revenue of $76.1 million on the same basis. GAAP reported sales were 28% higher than the prior-year quarter's $67.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.26. The seven earnings estimates compiled by S&P Capital IQ predicted $0.25 per share. GAAP EPS of $0.26 for Q4 were 7.1% lower than the prior-year quarter's $0.28 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 57.3%, 300 basis points better than the prior-year quarter. Operating margin was 6.2%, 560 basis points worse than the prior-year quarter. Net margin was 6.2%, 80 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $61.5 million. On the bottom line, the average EPS estimate is $0.44.
Next year's average estimate for revenue is $338.7 million. The average EPS estimate is $1.99.
The stock has a two-star rating (out of five) at Motley Fool CAPS.. Among 136 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 101 give SodaStream International a green thumbs-up, and 35 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on SodaStream International is outperform, with an average price target of $51.95.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Motley Fool newsletter services have recommended buying shares of SodaStream International. 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.