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SodaStream (SODA) Beats on Q1 Earnings & Revenues, Lifts View
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SodaStream International Ltd. came up with impressive results in the first quarter of 2018, beating the Zacks Consensus Estimate on both the counts. Results benefitted from increased contribution from Americas' and Asia-Pacific businesses, double-digit growth in Germany and positive foreign currency translation.
SodaStream’s adjusted earnings of 81 cents per share beat the Zacks Consensus Estimate of 66 cents by 22.7%. Earnings increased 23.1% year over year on strong revenues, improved efficiencies and solid margin.
Revenues
Total revenues of $143.6 million beat the Zacks Consensus Estimate of $131.9 million by 8.9%. Revenues rose 24.6% year over year, marking the ninth consecutive quarter of double-digit growth.
The impressive top-line results were driven by double-digit increase in revenues across all regions, barring the 4.7% drop in Central & Eastern Europe, Middle East, Africa (CCEMA). The performance was particularly solid in the United States, Germany, Canada and Australia.
Geographical Breakdown
Sales rose 21.8% in Western Europe, which represented 57% of global sales owing to double-digit growth in Germany, positive foreign currency translations, increased household penetration in Holland and solid gas refill sales across the region.
SodaStream’s revenues from the Americas (U.S. and Canada) increased 39%. Sales in Canada were up 44% on growth in sparkling water makers, gas refills and flavors. Revenues increased 33% in the United States.
In the Asia Pacific, revenues increased 28% year over year on strong demand in Australia and Japan. In CCEMA, sales dropped 4.7%.
Product Performance
In terms of product performance, gas refill units grew 8.8% in the first quarter and flavor unit sales rose 4.4% year over year. Sparkling water maker units were down 1.6% owing to the launch of a new distribution model in France.
Margin Improve
Gross margin rose 250 basis points (bps) year over year to 55.2%. Adjusted EBITDA was $30.8 million, up 24.3% year over year. Leveraging of fixed infrastructure on higher revenue, positive FX impact and changes in product mix, led to the upside.
Operating income was $21.3 million, up 34.4% year over year on positive FX impact.
SodaStream International Ltd. Price, Consensus and EPS Surprise
Earnings are expected to grow 27.5%, 19.3% and 19.6% for Bluegreen Vacations, Intercontinental Hotels and Discovery Communications, respectively, this year.
5 Medical Stocks to Buy Now
Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions.
New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.
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SodaStream (SODA) Beats on Q1 Earnings & Revenues, Lifts View
SodaStream International Ltd. came up with impressive results in the first quarter of 2018, beating the Zacks Consensus Estimate on both the counts. Results benefitted from increased contribution from Americas' and Asia-Pacific businesses, double-digit growth in Germany and positive foreign currency translation.
SodaStream’s adjusted earnings of 81 cents per share beat the Zacks Consensus Estimate of 66 cents by 22.7%. Earnings increased 23.1% year over year on strong revenues, improved efficiencies and solid margin.
Revenues
Total revenues of $143.6 million beat the Zacks Consensus Estimate of $131.9 million by 8.9%. Revenues rose 24.6% year over year, marking the ninth consecutive quarter of double-digit growth.
The impressive top-line results were driven by double-digit increase in revenues across all regions, barring the 4.7% drop in Central & Eastern Europe, Middle East, Africa (CCEMA). The performance was particularly solid in the United States, Germany, Canada and Australia.
Geographical Breakdown
Sales rose 21.8% in Western Europe, which represented 57% of global sales owing to double-digit growth in Germany, positive foreign currency translations, increased household penetration in Holland and solid gas refill sales across the region.
SodaStream’s revenues from the Americas (U.S. and Canada) increased 39%. Sales in Canada were up 44% on growth in sparkling water makers, gas refills and flavors. Revenues increased 33% in the United States.
In the Asia Pacific, revenues increased 28% year over year on strong demand in Australia and Japan. In CCEMA, sales dropped 4.7%.
Product Performance
In terms of product performance, gas refill units grew 8.8% in the first quarter and flavor unit sales rose 4.4% year over year. Sparkling water maker units were down 1.6% owing to the launch of a new distribution model in France.
Margin Improve
Gross margin rose 250 basis points (bps) year over year to 55.2%. Adjusted EBITDA was $30.8 million, up 24.3% year over year. Leveraging of fixed infrastructure on higher revenue, positive FX impact and changes in product mix, led to the upside.
Operating income was $21.3 million, up 34.4% year over year on positive FX impact.
SodaStream International Ltd. Price, Consensus and EPS Surprise
SodaStream International Ltd. Price, Consensus and EPS Surprise | SodaStream International Ltd. Quote
Financials
Cash and cash equivalents as of Mar 31, 2018, was $73.5 million compared to $85.2 million as of Dec 31, 2017.
Working capital increased 21.5% to $160.6 million from $132.3 million as of Dec 31, 2017.
Inventories rose 22.4% to $118.8 million from $97.1 million as of Dec 31, 2017.
2018 Outlook Raised
Total revenues are now expected to see about a 15% year-over-year increase (12% expected earlier).
Operating income is likely to grow approximately 15% compared to the earlier projection of 10%.
Earnings per share are estimated to grow 8% (5% expected earlier).
Zacks Rank
SodaStream carries a Zacks Rank #3 (Hold).
Stocks to Consider
A few better-ranked stocks in the Consumer Discretionary sector are Bluegreen Vacations Corporation , Intercontinental Hotels Group (IHG - Free Report) and Discovery Communications, Inc. . All three stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings are expected to grow 27.5%, 19.3% and 19.6% for Bluegreen Vacations, Intercontinental Hotels and Discovery Communications, respectively, this year.
5 Medical Stocks to Buy Now
Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions.
New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.
Click here to see the 5 stocks >>