This Week's 5 Smartest Stock Moves
If you're feeling good about the market, you're not alone. Take my hand as we go over some of this week's more uplifting headlines.
1. From flat to fizz
Remember how investors were selling shares of SodaStream (NAS: SODA) last week, as if softening sales of Keurig brewers and K-Cups somehow had any bearing on what an Israeli company was up to with its home-based carbonated-beverage system?
Well, the pop star proved itself with this week's earnings report.
SodaStream popped 26% higher on Wednesday after posting blowout quarterly results.
Revenue climbed 50% to $87.9 million, and adjusted earnings climbed 67% to $11.5 million -- or $0.55 a share. Analysts were only expecting an adjusted profit of $0.45 a share on $73.7 million in revenue after converting their estimates into dollars.
SodaStream made sure to silence the skeptics by also raising its top- and bottom-line guidance for all of 2012.
Fizzy lifting drinks, indeed.
2. Your car is here -- and it's early
Tesla Motors (NAS: TSLA) may have posted a larger-than-expected quarterly deficit on soft revenue, but shares of the electric-car maker still got a lift from its announcement that its highly anticipated Model S sedan may be available as early as next month.
The all-electric $49,900 Model S -- which may seem expensive, though it's premiering at a more reasonable price than Tesla's original Roadster -- wasn't supposed to hit the market until July, but if it's able to clear government crash-rating tests, deliveries may begin as soon as July.
Technically speaking, this may not seem to be such a big deal. The company only expects to assemble 5,000 Model S cars this year, and they're all spoken for, given the 10,000 buyers on the waiting list. However, an early arrival is confirmation that there are no problems holding up production. Who knows how big the waiting list will grow once the car is out in the wild?
3. Monster growth
If a soft-drink giant really wants to get its hands on the world's second-largest energy drink maker, it's going to have to pay up.
Revenue grew 28% to $454.6 million, and margins expanded to deliver earnings growth of 38% to $0.41 a share. Analysts were only expecting a profit of $0.38 a share on $447.1 million in revenue. The pros look so lethargic that maybe some Monster is in order. I recommend the low-carb blue cans in 16-ounce servings.
The stock closed 9% higher yesterday on the news. Forget about the Coca-Cola buyout rumors that recently surfaced and faded. Why would Monster want to punch out now?
4. IMAX headroom
IMAX (NYS: IMAX) was only supposed to be showing Marvel's The Avengers for one week, switching over to Dark Shadows today.
Well, after the superhero flick obliterated box-office records, IMAX is making sure it doesn't give up that easily on a cash cow. The two movies will share some IMAX screens this weekend, giving The Avengers an extended run on its supersized format, but still making it available for Dark Shadows fans.
It's a smart call.
Studios may not be happy to see their movies juggled around this way -- especially the films that wind up sharing screens after the IMAX-related remastering costs -- but scheduling flexibility is in the best interest of IMAX and exhibitors.
Besides, no offense against what seems like another wickedly entertaining Tim Burton-Johnny Depp movie, but big-budget action blockbusters are typically the big draws on IMAX's sensory-enhancing platform.
5. Mouse magic
Disney (NYS: DIS) posted better-than-expected quarterly results this week. Revenue climbed 6%, and adjusted earnings per share soared 18%.
The margin-widening performance is all the more impressive because it took place during the same quarter that the family entertainment giant took a mighty blow on John Carter. Disney can put out what may be the biggest money-losing theatrical release of all time and actually thrive on the strength of ESPN, social gaming, and improvements at all of its theme parks outside of Disneyland Paris.
Well played, Disney.
And to think that the quarter ended before The Avengers raised the bar on theatrical opening weekends earlier this month.
At the time this article was published The Motley Fool owns shares of Walt Disney and SodaStream International.Motley Fool newsletter serviceshave recommended buying shares of Monster Beverage, Walt Disney, SodaStream International, IMAX, and Tesla Motors. The Motley Fool has adisclosure policy. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. Try any of our Foolish newsletter servicesfree for 30 days.Longtime Fool contributor Rick Munarriz calls them as he sees them. He does not own shares in any of the stocks in this story, except for Disney. Rick is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.