We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Is a Beat in Store for SodaStream's (SODA) Q1 Earnings?
Read MoreHide Full Article
SodaStream International Ltd. is slated to release first-quarter 2018 numbers on May 5, before the opening bell.
This Israel-based manufacturer of household soda witnessed a positive earnings surprise of 44.87% last quarter, recording an average beat of 40.40% in the last four quarters.
Let’s take a look at how things are shaping up for the first quarter —
SodaStream banks heavily on the growing demand for its sparkling water. The company’s cost-effective beverage carbonation systems help consumers transform ordinary tap water into soft drinks and sparkling water, providing a healthier alternative to carbonated sugary drinks. Owing to a shift in consumer preference toward healthier sparkling water, SodaStream repositioned itself in the United States to capitalize on this.
In 2017, the sparkling water maker’s unit sales increased 24%, while its gas refill units surged 11% year over year. We expect this trend to continue in the to-be-reported quarter as well. Meanwhile, the Zacks Consensus Estimate for first-quarter 2018 revenues is pegged at $131.9 million, reflecting 14.4% year-over-year growth.
Cost savings and product margin expansions realized from the consolidation of its manufacturing and logistics operations, along with optimization efforts related to expense and inventory management, bode well.
However, the company intends to increase investment in capacity expansion and improved production processes in 2018, which will obviously lead to increased costs. Therefore, the consensus estimate for first-quarter earnings is pegged at 66 cents, flat year over year.
Also, owing to SodaStream’s extensive international presence, negative currency translation poses a threat.
Here is What Our Quantitative Model Predicts:
Our proven model shows that SodaStream is likely to beat on earnings in the to-be-reported quarter. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen.
Zacks ESP: SodaStream has an Earnings ESP of +6.06%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: SodaStream has a Zacks Rank #3, which increases the predictive power of ESP.
SodaStream International Ltd. Price and EPS Surprise
Meanwhile, we caution against stocks with a Zacks Rank #4 and 5 (Sell-rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Other Stocks to Consider
Here are some other companies in the broader Consumer Discretionary sector that you may also want to consider, as our model shows that they have the right combination of elements to post an earnings beat:
Carnival Corporation (CCL - Free Report) has an Earnings ESP of +2.31% and a Zacks Rank #3.
Boyd Gaming Corporation (BYD - Free Report) has an Earnings ESP of +3.59% and holds a Zacks Rank #3.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius. Click for details >>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Is a Beat in Store for SodaStream's (SODA) Q1 Earnings?
SodaStream International Ltd. is slated to release first-quarter 2018 numbers on May 5, before the opening bell.
This Israel-based manufacturer of household soda witnessed a positive earnings surprise of 44.87% last quarter, recording an average beat of 40.40% in the last four quarters.
Let’s take a look at how things are shaping up for the first quarter —
SodaStream banks heavily on the growing demand for its sparkling water. The company’s cost-effective beverage carbonation systems help consumers transform ordinary tap water into soft drinks and sparkling water, providing a healthier alternative to carbonated sugary drinks. Owing to a shift in consumer preference toward healthier sparkling water, SodaStream repositioned itself in the United States to capitalize on this.
In 2017, the sparkling water maker’s unit sales increased 24%, while its gas refill units surged 11% year over year. We expect this trend to continue in the to-be-reported quarter as well. Meanwhile, the Zacks Consensus Estimate for first-quarter 2018 revenues is pegged at $131.9 million, reflecting 14.4% year-over-year growth.
Cost savings and product margin expansions realized from the consolidation of its manufacturing and logistics operations, along with optimization efforts related to expense and inventory management, bode well.
However, the company intends to increase investment in capacity expansion and improved production processes in 2018, which will obviously lead to increased costs. Therefore, the consensus estimate for first-quarter earnings is pegged at 66 cents, flat year over year.
Also, owing to SodaStream’s extensive international presence, negative currency translation poses a threat.
Here is What Our Quantitative Model Predicts:
Our proven model shows that SodaStream is likely to beat on earnings in the to-be-reported quarter. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen.
Zacks ESP: SodaStream has an Earnings ESP of +6.06%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: SodaStream has a Zacks Rank #3, which increases the predictive power of ESP.
SodaStream International Ltd. Price and EPS Surprise
SodaStream International Ltd. Price and EPS Surprise | SodaStream International Ltd. Quote
Meanwhile, we caution against stocks with a Zacks Rank #4 and 5 (Sell-rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Other Stocks to Consider
Here are some other companies in the broader Consumer Discretionary sector that you may also want to consider, as our model shows that they have the right combination of elements to post an earnings beat:
Casa Systems, Inc. has an Earnings ESP of +6.48% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Carnival Corporation (CCL - Free Report) has an Earnings ESP of +2.31% and a Zacks Rank #3.
Boyd Gaming Corporation (BYD - Free Report) has an Earnings ESP of +3.59% and holds a Zacks Rank #3.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Click for details >>