Business in Brief: SodaStream Shares Jump on Earnings Report

Treasury expected to stall IMI privatization; Allot Communications reports Q2 loss; TASE slumps, following declines on overseas markets.

An employee packages carbon dioxide (CO2) cylinders at the SodaStream International Ltd. factory in Mishor Adumim, near Jerusalem, Israel, on Wednesday, Aug. 17, 2011.
Bloomberg

SodaStream shares jump on earnings report

Israeli home carbonation machine maker SodaStream International Tuesday reported revenues of $119 million in the second quarter, up 17.2% from the same period in 2015. The company attributed most of the increased revenue to higher demand for its products, particularly in Germany, Canada, Japan, France and South Korea. There was also good news from the Americas, where sales in the second quarter rose 12% compared to the parallel quarter last year. Net income increased 120.8%, to $7.8 million, from $3.5 million in the second quarter of 2015. Diluted earnings per share increased to 37 cents, compared to 17 cents in the second quarter of 2015. The dual-listed company’s shares closed 14.4% higher in Tel Aviv Tuesday, at 105.50 shekels ($27.62), after the quarterly report was issued. 

Treasury expected to stall IMI privatization

Finance Ministry Director General Shai Babad is expected to halt the privatization of Israel Military Industries, ministry sources said Tuesday, predicting that the process would not be resumed until a revaluation is made of the state-owned defense contractor. The expected delay comes, sources said, after the Government Companies Authority had decided to pursue financial negotiations with Elbit Systems, the sole remaining bidder for IMI. The fact that Elbit is the only bidder at this point has raised concerns regarding whether the sale price for IMI would be sufficiently high and also regarding how such a sale would curb competition, because it would make Elbit a monopoly supplier to the defense establishment with respect to land-based military equipment. (Ora Coren)

Allot Communications reports Q2 loss

Allot Communications reported Tuesday that it had a second-quarter loss of $1.2 million. The Hod-Hasharon-based company posted revenue of $23 million in the period, which fell short of analysts’ forecasts. Three analysts surveyed by Zacks Investment Research had forecast $24.5 million. Allot expects full-year revenue in the range of $90 million to $94 million, down from an earlier forecast of $102 million to $108 million, meaning that the company won’t show growth this year, for the second year in a row. Allot does expect improved profitability, however. The company’s shares closed at 17.72 shekels ($4.64) down 5% in Tel Aviv trading Tuesday. (Omri Zerachovitz and AP)

TASE slumps, following declines on overseas markets

Shares on the Tel Aviv Stock Exchange were generally lower in trading Tuesday, in keeping with the bearish mood on markets abroad. The blue-chip TA-25 index lost 1%, closing at 1,447.26 points while the broader TA-100 index declined by 0.9% to 1,264.67 points. Trading volume was 877 million shekels ($230 million). The Banks 5 index, which had gained 1.7% Monday, lost most of that, closing 1.5% lower at 1,332.52 points, led by Bank Leumi and Bank Hapoalim, each of which declined by 1.7% (Leumi to 13.83 shekels and Hapoalim to 19.51 shekels). Among other shares of note, Allot Communications shares lost 5% of their value amid disappointing second quarter earnings, while SodaStream International shares closed 14.4% higher on stronger earnings. (Omri Zerachovitz)