SodaStream's 25% Drop Might Be The Opportunity You've Been Waiting For

Updated
SodaStream's 25% Drop Might Be The Opportunity You've Been Waiting For

On Monday, Jan. 13, 2014 SodaStreamInternational issued guidance for fiscal year 2013 that was dramatically below both their previous guidance and Wall Street analyst estimates. For fiscal year 2013, the company expected net income to come in at approximately $52.5 million versus a previous estimate of $63 million. SodaStream also said that they expect revenues of $562 million for the full year, versus estimated revenues of $564.3 million.

This was a classic earnings miss, and the reasons for it, according to the company's CEO, amounts to a "challenging holiday season in the U.S. and several factors, mostly from the second half of the quarter that negatively affected our gross margin. These include lower sell-in prices and higher product costs, a shift in product mix versus plan, and unfavorable changes in foreign currency exchange rates..."

SodaStream International is drastically smaller than behemoths Coca-Cola and Pepsico, Inc. both of which represent major hurdles as the company tries to grow. However, despite these headwinds, and the more than 25% drop in the company's share price, could this fumble be the opportunity Foolish investors have been waiting for?


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The article SodaStream's 25% Drop Might Be The Opportunity You've Been Waiting For originally appeared on Fool.com.

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