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.

blog comments powered by Disqus
Insider Monkey Headlines
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

On the Move: The 10 Fastest Growing Businesses in 2015

Fast Money: The 10 Highest Paying Fast Food Restaurants

Mixing It Up: The 14 Best Music Mashups of 2014

Rito Pls Buff: The 10 Least Played Champions in LoL Season 4

10 Covers of Popular Songs that are Better than the Originals

Must See TV: The 9 Most Anticipated Shows of 2015

The 15 Biggest Box Office Bombs of All Time

10 Things The World Can’t Stand About Americans

Picture Perfect: The 6 Smartphones with the Best Cameras

The 10 Best Countries To Work In the World

A Profitable Day At The Track: 5 Tips For Betting On Horses

Tearing You Apart: 6 Bad Habits That Ruin Relationships

Learning on the Job: The 6 Biggest Mistakes Parents Make

Shopaholics Rejoice: The 12 Biggest Malls in the World

Fright Night: 10 Horror Movies Based on True Stories

Mach Mania: The 10 Fastest Jets in the World

Military Heavyweights: The 10 Countries with the Most Tanks

All In: The 7 Richest Poker Players in the World

Abracadabra: The 10 Best Magicians in the World

The 10 Richest Asian Countries in the World in 2014

Eyes in the Sky: 10 Things You Need to Know About Drones

Rising Stars: The 6 Best Silicon Valley Startups

Military Muscle: The 5 Most Advanced Armies in South America

All that Glitters: The 7 Most Luxurious Jewelry Brands in the World

5 Things You Didn’t Know About ISIS but Should

Empowering Your Money: The 5 Best Energy Stocks to Invest In

The 11 Best Android Apps You Can’t Get on iOS

The 10 Most Important International Conflicts in 2014

Mood Enhancers: The 20 Most Uplifting Songs of all Time

Lover Beware: The 8 Countries that Cheat the Most

Breath of Fresh Air: The 25 Countries with the Best Air Quality on the Planet

Singles Beware: The 8 Worst Mistakes Made on First Dates

Healthy and Happy: The 10 Countries with Lowest Healthcare Costs

The 6 Best Company Team Building Activities to Build Workplace Camaraderie

Ships Ahoy: The 10 Busiest Shipping Ports in the World

10 Productivity Tips to Save You Time and Help You Do More With Less

Grab a Bite: The Most Popular Fast Food Restaurants in America

Friday Night Thirst: The 10 Most Popular Cocktails in the World

The 6 Greatest Unsolved Mysteries We May Never Figure Out

7 Useless Products You Never Should’ve Bought

The 5 Reasons Why You’re Single and Miserable

The 7 Most Addictive Foods in the World We Can’t Stop Eating (Even Though We Should)

5 Amazing Places You Can Swim with Dolphins

The Top 7 Most Livable Countries In The World

The 10 Most Expensive Baseball Cards Ever Pulled From A Pack

The 5 Easiest Second Languages to Learn for English Speakers

Silver Spoon: The 6 Richest Families in the World

The 20 Countries with the Largest Prison Populations in the World

The Top 10 Richest Actors in the World

The 10 Best Airline Stocks to Invest In Before They Fly Too High

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 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!