SodaStream takes deep dive on guidance
Shares fall by more than 20% after the beverage company calls US holiday sales 'challenging.'
By Christopher Freeburn
SodaStream released unaudited, preliminary results for fiscal 2013. The company forecast adjusted earnings of $52.5 million on revenue of $562 million for the year.
SodaStream had previously estimated 2013 profits of $65 million on $567 million in annual revenue. Executives attributed the weaker-than-expected results to a "challenging holiday selling season in the U.S.," among other factors.
CEO Daniel Birnbaum also noted that "despite achieving all-time record sales, we failed to deliver our profit targets and are disappointed in our fourth-quarter performance."
The maker of home beverage carbonation systems noted that it is taking steps to improve profit margins, but expected discouraging market conditions to extend through the first half of 2014.
The stock closed above $75 a share in June. Since then, with U.S. soda consumption declining and competitors entering the market, SODA stock has fallen by nearly 50%.
Monday was the first time since 2012 that SodaStream has traded for less than $40 a share.
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