The 10-second takeaway
For the quarter ended Sep. 30 (Q3), SodaStream International beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share grew significantly.
Margins grew across the board.
SodaStream International reported revenue of $112.8 million. The nine analysts polled by S&P Capital IQ expected a top line of $105.3 million on the same basis. GAAP reported sales were 43% higher than the prior-year quarter's $78.4 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 $0.87. The five earnings estimates compiled by S&P Capital IQ forecast $0.74 per share. GAAP EPS of $0.80 for Q3 were 60% higher than the prior-year quarter's $0.50 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 54.2%, 70 basis points better than the prior-year quarter. Operating margin was 14.6%, 160 basis points better than the prior-year quarter. Net margin was 14.9%, 150 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $113.5 million. On the bottom line, the average EPS estimate is $0.51.
Next year's average estimate for revenue is $409.4 million. The average EPS estimate is $2.33.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 513 members out of 622 rating the stock outperform, and 109 members rating it underperform. Among 144 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 109 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 $53.99.
- Add SodaStream International to My Watchlist.
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. The Motley Fool owns shares of SodaStream. Motley Fool newsletter services recommend 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.