Investors Not Impressed with SodaStream's Record Sales

SodaStream

posted earnings results that exceeded expectations on Wednesday. Still, shares fell nearly five percent before rebounding somewhat later in the session Wednesday. The company posted a fourth quarter earnings per share figure of $0.45, more than the estimated $0.38. Earnings were up 41% from the same quarter last year. Revenue came in at $132.90M versus the estimated $121.54M. However, gross margin came in at 54%, slightly less than the 54.5% that was expected. Additionally, CO2 refill unit sales -- a sign of how frequently SodaStream's machines are actually being used -- were flat compared with the prior year. Trading at a PE ratio near 26, SodaStream might be considered a relatively expensive stock. Given the valuation, investors might simply have been expecting a bigger beat on earnings from the company. Shares of SodaStream traded near $51 on Wednesday.