SodaStream (SODA) is down 5% despite reporting better than expected first quarter results.
Revenue increased 14.3% to $115.3 million. EBITDA increased 62.9% to $20.0 million and diluted earnings per share increased 129.3% to $0.66.
Sales of SodaStream starter kits rose 37% while consumable refills rose +6%. Sales were strong across each region: Western Europe +12%; Americas +12%, Asia-Pacific +38%; EMEA +15
This marks the sixth consecutive quarterly report that handily beat Wall Street's forecasts since the company re-vamped the marketing message around its home carbonation product. SodaStream is benefiting from the consumer shift towards healthier beverage consumption.
The stock was indicated higher premarket after the strong report. On the call, management guided second quarter revenue in-line with estimates and raised guidance for fiscal 2017. SodaStream raised 2017 sales growth to 7% from mid-single digit growth. Wall Street expected 7.5% growth. The company reaffirmed gross margin guidance but operating income growth to the low 20% range.
The stock sold off at the open and quickly bounced off its 50-day moving averages near the $51 level. SodaStream has a $1.2 billion market cap and trades at ~22x earnings.