Sodastream International Ltd (SODA) Crushes It (Again) … but Is the Stock a Buy?

Shares of Sodastream International Ltd (NASDAQ:SODA) bubbled up more than 15% during intra-day trading Wednesday, after the company not only annihilated analysts’ already-lofty expectations, but also raised its full-year 2013 guidance.

But with Sodastream International Ltd (NASDAQ:SODA) now up more than 70% over the past year, including a 50% jump so far in 2013, what’s an investor to do?

The numbers
Sodastream International Ltd (NASDAQ:SODA)’s second-quarter revenue increased 28.5% year over year to $132.4 million, while diluted earnings per share rose an even more impressive 33.3% to $0.60. For those of you keeping track, remember analysts were expecting earnings of only $0.57 per share on sales of $129.7 million.

Of course, it’s hard to fault analysts for missing the mark when Sodastream International Ltd (NASDAQ:SODA) keeps increasing its guidance.

Remember, in Q1, management raised their revenue and earnings forecast by another 2%, telling investors to expect full-year sales and earnings growth of 27% and 20%, respectively.

Sure enough, this quarter was no different, as strong unit sales growth for soda makers, gas refills, and flavors of 18%, 30%, and 25%, respectively, allowed Sodastream International Ltd (NASDAQ:SODA) management to feel comfortable increasing their full-year 2013 revenue and earnings guidance. Now, they say, we should look for 30% sales growth in 2013 to just over $567 million, and 23% net income growth to around $54 million.

All in all, when we zoom out a bit, that represents solid progress for Sodastream International Ltd (NASDAQ:SODA) toward achieving their previously outlined goal of $1 billion in annual sales by 2016, especially when we remember the current gains were achieved in spite of strong comps last year fueled by the launch of SodaStream’s products at Wal-Mart here in the United States.

In fact, this growth also flies in the face of naysayers’ concerns that SodaStream is a fad, and seems to indicate that more and more American homes are opening up to the idea of ditching traditional soda from the likes of Coca-Cola and PepsiCo, Inc. (NYSE:PEP).

The worries
Then again, that doesn’t negate the possibility of competition down the road from other at-home beverage enthusiasts, the list of which most recently grew to include Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR). Remember, reports surfaced earlier this month showing the Keurig-creator recently applied for a trademark for the word “Karbon,” which will apparently describe Green Mountain’s version of a machine “for the production of cold water soda, still, carbonated, and sparkling beverages.”

Now, that doesn’t mean Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR)’s soda-maker will come to market anytime soon, and even then it would have its work cut out for it in trying to permeate SodaStream’s home turf — something with which other competitors have had little luck to date — but who better than the company behind the popularization of at-home coffee makers to eventually slow SodaStream’s rapid rise?