SodaStream beats by $0.11, beats on revs; raises FY17 EPS and rev guidance above consensus
- Reports Q3 (Sep) earnings of $0.87 per share, $0.11 better than the Capital IQ Consensus of $0.76; revenues rose 12.6% year/year to $139.8 mln vs the $135.43 mln Capital IQ Consensus. The increase was driven by growth in all geographical regions, highlighted by strong performances in Germany, Canada, Japan, Australia and Austria. Changes in FX did not have a material impact on revenue. Gross margin increased 200 basis points to 53.1% compared to 51.1% in the same period in the prior year. The increase reflects continued production optimization, the leveraging of fixed infrastructure costs on increased production volume and the introduction of higher margin sparkling water makers, partially offset by a higher portion of sparkling water makers in the product mix and changes in FX compared to the same period in 2016.
- Co issues upside guidance for FY17, sees EPS +40% to $2.90 (from $2.70) vs. $2.75 Capital IQ Consensus; sees FY17 revs +13% to ~$536 mln (from 526 mln) vs. $525.07 mln Capital IQ Consensus Estimate.
- "Our product, marketing and distribution strategies aimed at building a global sparkling water franchise continued to gain traction during the quarter as evidenced by the increase in gas refill units to an all-time record 8.4 million in the third quarter. This high-water mark underscores our progress expanding household penetration through new customer acquisition and better retention of existing users. As we head into the fourth quarter of 2017 and look out to next year, we remain confident that we are well positioned to continue building on the current momentum and further unlock the power of our business model to return greater value to our shareholders