SodaStream plunges on weak 3Q guidance

FBN's Lori Rothman breaks down SodaStream's third-quarter revenue warning.

SodaStream Sees 3Q Revenue Falling Short of Views

Features Reuters

SodaStream International (SODA), the Israeli at-home soda machine maker said to be looking for a buyer, estimated third-quarter revenue that fell short of market expectations, citing weak demand in the United States.

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SodaStream's shares fell as much as 16 percent in heavy premarket trading on Tuesday. Up to Monday's close, the company had already lost nearly half its market value this year.

"We are very disappointed in our recent performance," Chief Executive Daniel Birnbaum said in a statement.

The results are a "clear indication" that the company needs to alter its course and improve execution across the board, he said.

SodaStream's sales in the Americas have fallen in the past two quarters as consumers opt for healthier drinks such as juices and teas over sodas. The United States is the company's biggest market.

Bloomberg reported in July that SodaStream was in talks with an investment firm to be taken private in a deal valuing the company at $828 million.

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At Monday's closing, the company was valued at about $576 million.

Israeli financial news daily Calcalist reported in April that SodaStream was in early talks to sell a stake of up to 16 percent to a strategic entity.

In June last year, the same newspaper reported that PepsiCo Inc had made an offer through Goldman Sachs to buy SodaStream for $2 billion. PepsiCo said the report was untrue.

SodaStream on Tuesday estimated revenue of about $125 million for the quarter ending Sept. 30 - well below the average analyst estimate of $154.1 million, according to Thomson Reuters I/B/E/S.

The company estimated operating income of about $8.5 million.

The company, which has not posted an increase in quarterly profit in the past one year, is scheduled to report results on Oct. 29.

SodaStream's shares were trading at $23.10 before the bell. (