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SodaStream 3Q profit slips on higher expenses

The Associated Press

NEWS: SodaStream's third-quarter net income slipped 2 percent as operating costs increased, although Wall Street expected worse. Its revenue growth was just shy of analysts' expectations. The fizzy drinks machine maker maintained its guidance.

Its stock declined in Wednesday premarket trading.

DETAILS: SodaStream makes machines for consumers that carbonate water and sells flavors for homemade soft drinks. The Israeli company's operating expenses rose 35 percent in the third quarter to $60.2 million. The latest quarter also included an income tax expense of $1.9 million versus a benefit of $850,000 last year.

NUMBERS: For the three months ended Sept. 30, SodaStream International Ltd. earned $16.4 million, or 76 cents per share. That's down from $16.8 million, or 80 cents per share, a year ago, but topped Wall Street's prediction of 72 cents per share.

Revenue rose 29 percent, to $144.6 million from $112.5 million, as the company sold more soda makers and accessories. Sales rose in Western Europe and the Americas, and fell in Asia. Analysts surveyed by FactSet expected $145.3 million.

FUTURE: The company still anticipates net income of $54 million on revenue of about $567 million. Analysts predict profit of $55.4 million on sales of $567 million.

STOCK: Shares fell $3.60, or 5.7 percent, to $60.15 before the opening bell. Shares have gained 42 percent this year.