SodaStream shares tumbled on Tuesday after the company warned thatthird-quarter revenue will come in at approximately $125 million, well below Wall Street estimates of $154 million.
Shares of SodaStream plunged 15 percent in premarket trading Tuesday following the announcement. (Get the latest quote here.)
The producer of soda-making systems pointed to an underperformance in the U.S. market as a key reason, and CEO Daniel Birnbaum called the results “disappointing.”
“Our U.S. 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,” he said in a statement. “While we were successful over the last few years in establishing a solid base of repeat users in the U.S., we have not succeeded in attracting new consumers to our home carbonation system at the rate we believe should be achieved. The third quarter results are a clear indication that we must alter our course and improve our execution across the board.”
The company said it expects operating income of about $8.5 million.