Why SodaStream Shares Exploded

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: SodaStream International shares were popping bottles today, flying up as much as 16% after soaring past earnings estimates once again.

So what: SodaStream is roaring again after shares had faded in recent weeks following the dissipation of a buyout rumor. Adjusted per-share profits jumped to $0.74, cruising past estimates at $0.67, while revenue jumped 26% to $132.4 million. That also topped expectations of $129.6 million. Sales growth was nearly even between base units and consumables, helping to hush the nagging naysayers who insist the product is a fad soon to be gathering dust in the attic. The countertop soda maker also boosted full-year estimates, saying it now expects revenue to rise 30% to $567.2 million, better than analyst expectations of $558 million. The company also raised EPS guidance, but did not give exact figures.

Now what: With 46% of shares sold short, SodaStream continues to taunt the doubters, beating estimates nearly every earnings report. The company noted that distribution in Wal-Mart stores had further helped drive demand, and its partnership with the world's biggest retailer should continue to pay dues in the quarters to come. SodaStream is a personal holding of mine, and I see little reason to bet against it, as the market seems to consistently underestimate the popularity of the at-home soda machines. Look for more reports like this in the future.

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The article Why SodaStream Shares Exploded originally appeared on Fool.com.

Fool contributor Jeremy Bowman 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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