Courtesy of Benzinga.
SodaStream International (NASDAQ: SODA) is set to release its quarterly earnings before the opening bell on Wednesday. Wall Street analysts are projecting that SODA will report earnings per share of $0.21. The low estimate is $0.18 with a high estimate of $0.24. This compares to the $0.25 that SODA reported in the year ago period. Estimates taken from Estimize.com suggest that traders are looking for some major upside to Wall Street consensus, with estimates holding at $0.53.
At first glance, this may appear high, but SODA has a strong track record of exceeding Street estimates. In last year’s corresponding quarter, for example, the company delivered 150% upside to consensus estimates of $0.10 by reporting EPS of $0.25.
Estimize is a unique new tool which allows traders and investors to get a better idea of what the “whisper number,” or real earnings expectations are for a company. The site does this by aggregating estimates from its users and generating a consensus EPS estimate based on this data.
Frequently, the “whisper number” is a better gauge of likely sentiment after the earnings numbers are released compared to Wall Street estimates which have a tendency to be on the conservative side. It is not uncommon to see a stock trade off sharply despite beating Street estimates if the numbers come up short of the whisper estimates.
Wall Street earnings estimates have fallen by a penny over the last 3 months from $0.22. During this time, SODA shares have soared 59% to $45.26 with the help of a strong broader market rally.
On the revenue front, analysts are projecting that the company will report sales of $62.95 million. The low estimate is $60.70 million with a high estimate of $64.40 million. This implies year over year sales growth of 25.90% from the $50.00 million that SODA reported in the year ago period.
On Monday, ahead of Wednesday’s key report, SODA shares have added 2.02% to $45.36. Volume has been heavier than normal as traders and investors continue to price upside into the stock while awaiting the company’s quarterly earnings results.
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