SodaStream misses Street 3Q forecasts
NEW YORK (AP) — SodaStream slashed its guidance Wednesday, citing difficult business conditions in the U.S. and other markets.
The company had already warned this month that demand for its soda machines and flavors would not be as strong as it had expected as it struggled to lure new buyers.
SodaStream now expects net income will fall about 42 percent this year, while revenue will decrease 9 percent. In July, the company forecast a 5 percent dip in net income and revenue growth of 5 percent.
Its shares lost 71 cents, or 3.2 percent, to $21.22 in afternoon trading.
SodaStream posted third-quarter net income of $9.5 million, or 45 cents per share, on $125.9 million in revenue.
Zacks Investment Research says analysts expected net income of 51 cents per share and $130.3 million in revenue.
Outside of the U.S., the Airport City, Israel, company saw weak conditions in France and the Czech Republic.
The guidance issued Wednesday implies the company will report about $24.4 million in net income and $512.1 million in revenue in 2014.
FactSet says analysts expected $539 million in revenue.
The company also said it will move its factory out of an Israeli settlement in the West Bank. SodaStream said the move is strictly for commercial reasons and was not driven by pressure from pro-Palestinian activists. Its new factory will be located in the southern Negev region of Israel.
Shares of SodaStream International Ltd. have fallen 20 percent since the company reported its preliminary third-quarter results on Oct. 7. The stock is down 57 percent since the beginning of the year.
Elements of this story were generated by Automated Insights using data from Zacks Investment Research. SODA stock research report from Zacks.