SodaStream International Ltd. on Tuesday warned that its third-quarter revenue would fall far short of estimates, weighed down by a slump in demand in the United States. "We are very disappointed in our recent performance," Chief Executive Daniel Birnbaum said in a statement. "Our U.S. business underperformed due to lower-than-expected demand for our soda makers and flavors which was the primary driver of the overall shortfall in the third quarter." The Israeli drinks company said the results "are a clear indication that we must alter our course." The company has started to shift its brand toward health and fitness, especially in the U.S. The company now expects revenue for the quarter of about $125 million, well below the FactSet consensus of $153.6 million. The company is expecting operating income of about $8.5 million. SodaStream is scheduled to report third-quarter earnings on Oct. 29. Shares were halted until 8.00 a.m. Eastern , but are down 44% in the year to date, while the S&P 500 has gained 6.3%.
Copyright © 2014 MarketWatch, Inc.
Continue Reading Below