An Investor's Take on SodaStream Earnings: Building a Future


In this video, Blake Bos gives his two cents' worth on SodaStream as a long-term investment. While the most recent earnings report beat estimates, the stock suffered a sell-off. For the long term, SodaStream is doing some good things. It is building out a manufacturing plant in Israel that should help reduce its dependence on subcontractors that are adversely hurting its earnings. Similarly, SodaStream is building out its distribution network to capitalize on sales of consumables. Lastly, later this summer, SodaStream should roll out a new product with a lower price tag than the current model. Look for a price of around $99 versus $150 for what's on the shelves now. There seems to be demand for SodaStream products, and this new lower-priced product should help drive sales in the last half of the year. All told, the convergence of building out manufacturing and distribution capabilities and, hopefully, growing sales of its lower-priced products should position SodaStream well for 2015-2016.

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Blake Bos owns shares of SodaStream. The Motley Fool recommends SodaStream. The Motley Fool owns shares of SodaStream. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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Originally published