Why Sodastream International Ltd Shares Cratered Today

This article originally appeared as part of ongoing coverage in our premium 

Motley Fool Rule Breakers

 service… we hope you enjoy this complimentary peek!

What’s happening?
Shares of Sodastream are trading 20% lower on Tuesday after the company issued preliminary third-quarter results  that came in below  expectations.

Why it’s happening
Sodastream’s third-quarter revenue is now expected to reach $125 million. This is not only below the year-ago quarter’s $144 million top line, it’s also far beneath Wall Street’s expectations for $154.4 million in revenue. Analysts had also expected $17.5 million in operating earnings, and Sodastream’s anticipated $8.5 million is less than half that. Sodastream made no bones about its miserable performance — CEO Daniel Birnbaum said that the company is “very disappointed in our recent performance,” which was blamed on weak U.S. demand due to a lack of customer growth.

The company is in the middle of a strategic shift toward focusing more on health and wellness, and will share more details on this strategy during the third quarter’s conference call later in the month.

var FoolAnalyticsData = FoolAnalyticsData || []; FoolAnalyticsData.push({ eventType: “ArticlePitch”, contentByline: “Alex Planes”, contentId: “cms.147047”, contentTickers: “”, contentTitle: “Why Sodastream International Ltd Shares Cratered Today”, hasVideo: “False”, pitchId: “828”, pitchTickers: “”, pitchTitle: “”, pitchType: “”, sfrId: “” });

The article Why Sodastream International Ltd Shares Cratered Today originally appeared on Fool.com.

var ord = window.ord || Math.floor(Math.random() * 1e16);
document.write(‘x3Cscript type=”text/javascript” src=”http://ad.doubleclick.net/N3910/adj/usdf.df.articles/articles;sz=5×7;ord=’ + ord + ‘?”x3ex3C/scriptx3e’);

Alex Planes has no position in any stocks mentioned. The Motley Fool recommends SodaStream. The Motley Fool owns shares of SodaStream. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 – 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

(function(c,a){window.mixpanel=a;var b,d,h,e;b=c.createElement(“script”);
b.type=”text/javascript”;b.async=!0;b.src=(“https:”===c.location.protocol?”https:”:”http:”)+
‘//cdn.mxpnl.com/libs/mixpanel-2.2.min.js’;d=c.getElementsByTagName(“script”)[0];
d.parentNode.insertBefore(b,d);a._i=[];a.init=function(b,c,f){function d(a,b){
var c=b.split(“.”);2==c.length&&(a=a[c[0]],b=c[1]);a[b]=function(){a.push([b].concat(
Array.prototype.slice.call(arguments,0)))}}var g=a;”undefined”!==typeof f?g=a[f]=[]:
f=”mixpanel”;g.people=g.people||[];h=[‘disable’,’track’,’track_pageview’,’track_links’,
‘track_forms’,’register’,’register_once’,’unregister’,’identify’,’alias’,’name_tag’,
‘set_config’,’people.set’,’people.increment’];for(e=0;e<h.length;e++)d(g,h[e]);
a._i.push([b,c,f])};a.__SV=1.2;})(document,window.mixpanel||[]);
mixpanel.init(“9659875b92ba8fa639ba476aedbb73b9”);

function addEvent(obj, evType, fn, useCapture){
if (obj.addEventListener){
obj.addEventListener(evType, fn, useCapture);
return true;
} else if (obj.attachEvent){
var r = obj.attachEvent(“on”+evType, fn);
return r;
}
}

addEvent(window, “load”, function(){new FoolVisualSciences();})
addEvent(window, “load”, function(){new PickAd();})

var themeName = ‘dailyfinance.com’;
var _gaq = _gaq || [];
_gaq.push([‘_setAccount’, ‘UA-24928199-1’]);
_gaq.push([‘_trackPageview’]);

(function () {

var ga = document.createElement(‘script’);
ga.type = ‘text/javascript’;
ga.async = true;
ga.src = (‘https:’ == document.location.protocol ? ‘https://ssl’ : ‘http://www’) + ‘.google-analytics.com/ga.js’;

var s = document.getElementsByTagName(‘script’)[0];
s.parentNode.insertBefore(ga, s);
})();