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SodaStream International Ltd. (SODA) stock is dropping almost 40% today after earnings were worse than expected. SodaStream International Ltd. (SODA), a Jim Cramer stock pick @ $68, is a maker of in home soda machines similar to the Green Mountain Coffee Roasters (GMCR) Keurig's. SODA is currently trading at $42 and is in free fall this morning.
AIRPORT CITY, Israel, Aug. 11, 2011 /PRNewswire via COMTEX/ -- SodaStream International Ltd. (SODA), a leading manufacturer of home beverage carbonation systems, announced today its results for the three and six month periods ended June 30, 2011.
Second Quarter 2011 Highlights (comparisons show second quarter 2011 as compared to second quarter 2010)
Revenues increased 38% to Euro 53.3 million
Americas revenues increased 136% to Euro 11.3 million
Adjusted diluted earnings per share was Euro 0.29 or $0.42*
Revenue from soda makers increased 36% to Euro 22.7 million
Revenue from consumables increased 54% to a record Euro 29.8 million
Flavor units increased 96% to a record 6.1 million
CO(2) refill units increased 34% to a record 3.2 million
Americas soda maker units increased 224%
The report says the SODA beat earnings: "SodaStream International Ltd reported Q2 EPS of $0.35, $0.13 better than the analyst estimate of $0.22"
Yet the stock still got hammered. thats why i bought a position at $43, i am hoping support holds at 42 and SODA closes up in the 50 to 55 range
SODA w/ a $40 stop is probably the best play. $40.50 is the next major low it must hold so if people are keeping stops around that level, $40 could hold on a plunge.
(Adds details from analyst note in paragraph 3, updates share movement)
* Q2 EPS 0.24 euros vs 0.17 euros a year ago
* Q2 rev up 38 pct
* Reiterates 2011 outlook
* Shares down 41 pct
BANGALORE, Aug 11 (Reuters) - SodaStream International Ltd posted a higher quarterly profit on strong sales of its soda makers, but kept its 2011 outlook and warned share-based compensation costs would be higher than expected.
Shares of the Israeli company, which sells products that allow customers to add carbonation and flavoring to tap water, fell 41 percent, making it the biggest percentage loser on Nasdaq.
"Investors were discounting full-year growth ahead of the company's guidance range and expected SODA to at least push top-line guidance higher this morning," JP Morgan analyst John Faucher wrote in a note to clients.
SodaStream forecast full-year sales to grow 30 percent and net income 60 percent.
The company, which went public in November 2010, said share-based compensation costs in 2011 would be 4.3 million euros, up from previously expected 3.7 million euros.
SodaStream makes carbon dioxide refills, reusable carbonation bottles and flavors for carbonated water, apart from soda-making machines, all targeted at the home market.
The company had told Reuters in May that it plans to launch products for use in offices, restaurants and the hospitality industry next year.
For the second quarter, net income more than doubled to 5.1 million euros ($7.23 million), or 24 euro cents a share, from 2.1 million euros, or 17 euro cents a share, a year ago.
Shares of the company were down 39 percent at $42.25 in afternoon trade. About 12 million shares have changed hand in heavy trade on Thursday.