Sodastream International Ltd (SODA) Pops Bears Off Again

Sodastream International Ltd (NASDAQ:SODA)Sodastream International Ltd (NASDAQ:SODA) keeps on popping.

The company behind the namesake beverage maker that transforms tap water into sparkling soda came through with another strong quarter this morning. Revenue rose 29% to $132.4 million. Net income climbed 36% to $12.9 million — or $0.57 a share. Analysts were only expecting a profit of $0.54 a share on $129.7 million in revenue.

The stock opened nicely higher on the news, and rightfully so. The trend of making premium beverages at home — ushered into popularity with Green Mountain‘s single-serve Keurig coffeemakers — continues to play out with carbonated drinks through Sodastream International Ltd (NASDAQ:SODA).

Unit sales of soda makers, carbonators, and soda flavors were up 22%, 31%, and 18%. In other words, these aren’t novelty kitchen appliances that are collecting dust in inaccessible drawers and cobweb-riddled pantry shelves. Just as we saw with Green Mountain’s Keurig, once folks make that initial investment, they do stick to it.

Anyone holding out for more proof that this isn’t a fad can look to Europe. Sodastream International Ltd (NASDAQ:SODA)’s been in Europe for a lot longer than its stateside push three years ago. The market accounts for a little more than half of its revenue. Despite the seasoned market and the economic uncertainties of the region, European revenue rose 26% for SodaStream during the quarter.

Sure, the 55% surge in the Americas is the real driver. We sure do love our seltzer and sweetened sodas down here, and the scorching heat that we’ve been experiencing throughout large chunks of the country can only help SodaStream at this point.

Earlier this summer, Israeli reports claimed that PepsiCo, Inc. (NYSE:PEP) was making a play to acquire SodaStream. The stock popped on the news, and naturally gave back those gains as the buyout chatter died out.

It never really made sense for the world’s second-largest soft drink company to validate the platform that threatens its very model through an acquisition, but naturally there were questions about why Sodastream International Ltd (NASDAQ:SODA) would be putting itself on the block in the first place. Were recent results disappointing? Is the future murky? As of this morning, investors can be relieved on both fronts.

It’s not just the strong quarter. SodaStream is boosting its guidance. The fast-growing pop star now sees revenue climbing 30% for all of 2013. It’s the second time in as many quarters that Sodastream International Ltd (NASDAQ:SODA) has juiced up its outlook. It was eyeing 25% top-line growth in February, and that was adjusted to 27% three months later. SodaStream’s net income is now projected to grow 23%, and that too has been nudged higher from 18% in February and 20% in May.

There’s natural skepticism out there, just as there was for Green Mountain when cynics argued that java lovers would never abandon their full pots of coffee. However, the bearishness is starting to fade. Short interest in Sodastream International Ltd (NASDAQ:SODA) has fallen from nearly 10 million shares sold short a year ago to just 7.4 million as of mid-July.

A few more quarters like this one, and it will be hard to find too many naysayers willing to put their money where their mouths are.

The article SodaStream Pops Bears Off Again originally appeared on Fool.com and is written by Rick Munarriz.

Longtime Fool contributor Rick Munarriz owns shares of Green Mountain Coffee Roasters and SodaStream. The Motley Fool recommends Green Mountain Coffee Roasters, PepsiCo, and SodaStream. The Motley Fool owns shares of PepsiCo and SodaStream.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The Most Wanted Drug Lords

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Best Travel Destinations in Australia

World’s Most Expensive Musical Instruments

World’s Most Famous Animals

Most Expensive Cakes in the World

Most Expensive Kosher Champagne in the World

Most Expensive Kosher Wine in the World

The Most Surprisingly Dark Fairy Tales

Most Popular Travel Destinations in Asia

The 10 Most Expensive Dresses Ever Worn to the Oscars

World’s Most Visited Art Museums

Best Countries for Photographers to Work in

Best Paid Jobs in the Film Industry

The Most Renowned Recovered Paintings Ever

Child Stars That Turned out Just Fine

Books That Were Banned in the Past Century

World’s Richest Dancers

Best Remedies against Bad Breath

Foods That Improve Your Skin Texture

Best-Selling Children’s Books of all Time

Foods That Boost Your Libido

Best-Selling Books of all Time

The Most Expensive Academy Awards Jewelry in History

Most Expensive Japanese Restaurant In New York City

The Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!