SodaStream Reports Record First Quarter, Raises Guidance

SodaStream International Ltd.

has posted a record first quarter and upped its outlook for the remainder of 2013. The Airport City, Israel-based firm's EPS climbed 18 percent year-over-year to $0.57, beating estimates of $0.54. Revenue soared 34 percent to $117.6 million, easily topping expectations of just over $113 million.

In terms of product segments, the company performed strongly on all counts. Consumables grew most at 37 percent with sales of $72 million. “Other” products climbed 34 percent to $2.6 million. Soda maker starter kits grew a very healthy 28 percent, finishing with $43 million in the quarter.

SodaStream's revenue in the Americas skyrocketed 89 percent to $48.3 million during the quarter, led by strong US sales. The company's gas refill, soda maker and syrup units grew 101%, 78% and 119%, respectively in the world's largest economy. Sales in Western Europe also rose substantially, climbing 17 percent to $53.3 million. Meanwhile, revenue remained virtually flat in Central & Eastern Europe, the Middle East and Africa at $6.7 million while it declined six percent to $9.3 million in the Asia-Pacific region.

On February 19, SodaStream reported that Fast Company named it one of the world's 50 most innovative companies. The company ranked first among Israeli businesses.

On March 12, SodaStream announced a strategic manufacturing relationship with Cott Beverages, a subsidiary of Cott Corporation

, to produce flavors specifically for the SodaStream carbonation system. Initial production will consist of existing SodaStream flavors and will occur at Cott's primary concentrate production facility in Columbus, Georgia. Terms of the agreement were not disclosed.

SodaStream has raised its revenue outlook from a 25 to 27 percent gain versus 2012. If this pans out, the carbonation system manufacturer will top the Wall Street consensus of $547.79 million with $554.1 million. The company has also raised its net earnings guidance to approximately 20 percent above its 2012 results versus the previous 18 percent. That would place it at around $52.7 million. At the current amount of outstanding shares, that comes out to EPS of $2.54, which would beat estimates of $2.47.

Interestingly, despite its record-setting quarter and elevated guidance, SodaStream is down in the early hours of trading. The only negative news appears to be a Businessweek headline that mentioned the company said it was “okay” to erode profit for growth, but that was

“SodaStream CEO Says No Plans to Erode Profitability.” Regardless, the stock has dropped to a one-month low of a bit under $50 as of this writing. SodaStream has declined approximately six percent on Wednesday.