YouTube/SodaStream SodaStream spokesperson Scarlett Johansson. SodaStream shares tumbled nearly 20% after the company announced ugly preliminary Q3 results.
"We are very disappointed in our recent performance," CEO Daniel Birnbaum said.
Management said revenue unexpectedly dropped to $125 million from $144 million a year ago; this was far below analysts' expectation for $154.4 million. Operating earnings were $8.5 million, which compares with analysts' expectations for $17.6 million.
"Our US business underperformed due to lower than expected demand for our soda makers and flavors which was the primary driver of the overall shortfall in the third quarter," Birnbaum said. "While we were successful over the last few years in establishing a solid base of repeat users in the US, we have not succeeded in attracting new consumers to our home carbonation system at the rate we believe should be achieved. "
Shares of SodaStream were halted shortly after 7 a.m. They resumed trading at 8 a.m.
The carbonated beverage machine company has been the subject of buyout rumors for months. In July, Bloomberg reported that the company was in talks with an unnamed investment firm to go private.
In September, an Israeli newspaper reported that a British fund was interested in buying the Israel-based company for $40 per share.
SODA closed at $27.57 on Monday. Shares of this once loved momentum stock have been on an absolute wild ride.
The stock was last down 19.11% trading around $ 22.30.
Yahoo Finance SODA ... losing its fizz.
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