Why SODA Stock Is Soaring Today

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SodaStream (SODA) released its quarterly earnings report which sent SODA stock soaring.

SODA stockThe company posted second-quarter earnings of $0.43 per share, exceeding the $0.31 per share average from analysts. SodaStream also topped revenue expectations of $140.6 million with $141.2 million.

CEO Daniel Birnbaum said that the company’s success last quarter can be attributed to record gas refills for the company’s carbonation system. He added that SodaStream’s product and marketing strategies have helped the company expand in its Western Europe, Asia Pacific and CEMEA regions.

However, the company will lower its projections for the second half of the year despite its success last quarter. Birnbaum issued a statement on the matter:

In the U.S., soda maker volumes remained under pressure as we struggled to drive consumer demand and retailers worked through excess inventory carried over from the holiday season. We are lowering our U.S. soda maker sales projections for the back half of the year while we reposition our brand behind health & wellness and refine our product line and marketing message to better promote this important consumer benefit. We are confident this strategy will have a positive long-term impact on our U.S. performance. Our revised plan for 2014 also includes operating expense reductions aimed at protecting profitability until growth trends improve.

SODA stock is up about 11% Wednesday afternoon.

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Article printed from InvestorPlace Media, https://investorplace.com/2014/07/soda-stock-sodastream/.

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