The company behind the namesake beverage maker that transforms tap water into sparkling soda came through with another strong quarter this morning. Revenue rose 29% to $132.4 million. Net income climbed 36% to $12.9 million — or $0.57 a share. Analysts were only expecting a profit of $0.54 a share on $129.7 million in revenue.
The stock opened nicely higher on the news, and rightfully so. The trend of making premium beverages at home — ushered into popularity with Green Mountain‘s single-serve Keurig coffeemakers — continues to play out with carbonated drinks through Sodastream International Ltd (NASDAQ:SODA).
Unit sales of soda makers, carbonators, and soda flavors were up 22%, 31%, and 18%. In other words, these aren’t novelty kitchen appliances that are collecting dust in inaccessible drawers and cobweb-riddled pantry shelves. Just as we saw with Green Mountain’s Keurig, once folks make that initial investment, they do stick to it.
Anyone holding out for more proof that this isn’t a fad can look to Europe. Sodastream International Ltd (NASDAQ:SODA)’s been in Europe for a lot longer than its stateside push three years ago. The market accounts for a little more than half of its revenue. Despite the seasoned market and the economic uncertainties of the region, European revenue rose 26% for SodaStream during the quarter.
Sure, the 55% surge in the Americas is the real driver. We sure do love our seltzer and sweetened sodas down here, and the scorching heat that we’ve been experiencing throughout large chunks of the country can only help SodaStream at this point.
Earlier this summer, Israeli reports claimed that PepsiCo, Inc. (NYSE:PEP) was making a play to acquire SodaStream. The stock popped on the news, and naturally gave back those gains as the buyout chatter died out.
It never really made sense for the world’s second-largest soft drink company to validate the platform that threatens its very model through an acquisition, but naturally there were questions about why Sodastream International Ltd (NASDAQ:SODA) would be putting itself on the block in the first place. Were recent results disappointing? Is the future murky? As of this morning, investors can be relieved on both fronts.
It’s not just the strong quarter. SodaStream is boosting its guidance. The fast-growing pop star now sees revenue climbing 30% for all of 2013. It’s the second time in as many quarters that Sodastream International Ltd (NASDAQ:SODA) has juiced up its outlook. It was eyeing 25% top-line growth in February, and that was adjusted to 27% three months later. SodaStream’s net income is now projected to grow 23%, and that too has been nudged higher from 18% in February and 20% in May.
There’s natural skepticism out there, just as there was for Green Mountain when cynics argued that java lovers would never abandon their full pots of coffee. However, the bearishness is starting to fade. Short interest in Sodastream International Ltd (NASDAQ:SODA) has fallen from nearly 10 million shares sold short a year ago to just 7.4 million as of mid-July.
A few more quarters like this one, and it will be hard to find too many naysayers willing to put their money where their mouths are.
The article SodaStream Pops Bears Off Again originally appeared on Fool.com and is written by Rick Munarriz.
Longtime Fool contributor Rick Munarriz owns shares of Green Mountain Coffee Roasters and SodaStream. The Motley Fool recommends Green Mountain Coffee Roasters, PepsiCo, and SodaStream. The Motley Fool owns shares of PepsiCo and SodaStream.
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