Bull Of The Day: SodaStream (SODA)

SodaStream International Limited (SODA - Free Report) is gaining momentum as health and wellness trends have boosted sales of its sparkling water system. This Zacks Rank #1 (Strong Buy) is expected to grow earnings by the double digits in 2017.

SodaStream makes and distributes home beverage carbonation systems called Sparkling Water Makers. These allow consumers to turn tap water into sparkling water and flavored sparkling water. Products are available at more than 80,000 retail stores in 45 countries.

Natural Unsweetened Essences Launches in Stores

On Nov 20, SodaStream announced that it was launching its premier flavor essences, Fruit Drops, in stores after the entire line of natural unsweetened essences sold out online in just 2 weeks.

They are all-natural flavored, preservative-free and contain zero calories.

It comes in 5 flavors at retailers: Lemon, Lime, Raspberry, Orange and Mango.

The response to this product is in line with consumer demand for natural products, which has been steadily rising.

But can it keep the momentum?

SodaStream Beats Again in the Third Quarter

On Nov 1, SodaStream reported its third quarter fiscal 2017 results and, once again, beat the Zacks Consensus.

It was the 9th earnings beat in a row.

Earnings were $0.87 versus the Zacks Consensus of $0.74.

Revenue jumped 13% to $139.8 million from $124.2 million in the third quarter of 2016.

It saw record profitability in the quarter along with gross margin expansion. The increase in gas refill units was an all-time record of 8.4 million in the third quarter.

SodaStream saw strong growth across most of its geographic segments with revenue jumping 34% in Asia-Pacific and 13.5% in Western Europe. However, it lagged in the Americas, rising just 1.2%.

Western Europe is still its largest geography, as a percentage of total revenue, at 60.6% in the third quarter. Asia-Pacific, by contrast, accounted for just 12.4% with the Americas at 21.6%.

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Disclosure: Tracey Ryniec is the Value Stock Strategist for Zacks.com. She is also the Editor of the  more

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