SodaStream International Ltd. (SODA:US), the Israeli maker of home soda machines, plunged the most since February 2012 after the company reported third-quarter sales that trailed analysts’ estimates.
Shares of Lod, Israel-based SodaStream sank 11 percent to $56.87. About 4 million shares traded today, more than four times the average volume during the last 90 days. Ten-day volatility (SODA:US) on the stock more than tripled to 66.8 today, the highest since May.
Revenue for the three-month period ending Sept. 30 was $144.6 million, SodaStream said today, below the $145.2 million mean estimate of nine analysts surveyed by Bloomberg. It was the first time that SodaStream missed analyst estimates (SODA:US) on on revenue since the company’s initial public offering in November of 2010. Net income fell 2.2 percent to $16.39 million from a year ago, the company said.
“The stock will be weak today given the lack of a beat on the top line and the lack of a raise to guidance,” Wendy Nicholson, an analyst at Citigroup Global Markets Group Inc., wrote in a note to clients today. “For a company that is putting up such strong growth, we think the stock deserves to trade even higher than its current valuation. We would take weakness in the stock today as a buying opportunity.”
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