The Ticker / SodaStream Profit Plunges as Move to New, Healthier Image Takes Shape

Wix.com turns in its first-ever profit, TowerJazz shares rally on strong second-quarter profit and TA-25 returns to record territory.

Scarlett Johansson representing SodaStream
Courtesy of SodaStream

SodaStream profit plunges as move to new, healthier image takes shape

SodaStream, the maker of home carbonation machines, reported another difficult quarter yesterday as it works to reposition itself as a healthy drink alternative. The company said that second-quarter net profit adjusted for restructuring costs dropped to $3.5 million, from $9.2 million a year earlier. That was 17 cents on a per-share basis, 20 cents less than the average estimate of six analysts surveyed by Zacks Investment Research. Adjusted revenue was $101.7 million, down from $141.2 million a year ago, although a lot of the decline was due to unfavorable exchange rates. Discounting those, revenue was $118.6 million in the second quarter. “Our new portfolio of better-for-you sparkling water flavors is currently rolling out to retailers around the world and we are testing a new marketing campaign, ‘Sparkling Waters – Made by You,’” said CEO Daniel Birnbaum. SodaStream shares, which have dropped 48% in the last 12 months, were down 1.9% at $126.92 in New York, midday local time yesterday. (TheMarker)

Wix.com turns in its first-ever profit

Wix.com, which helps small businesses build and operate websites, reported its first-ever quarterly profit yesterday as customers convert to its paid services faster than expected. Wix said it made adjusted earnings before interest, tax, depreciation and amortization, or EBITDA, of $3.5 million in the second quarter, compared with a $4.3 million loss the same time last year. Revenue jumped 43% to $48.6 million. President and COO Nir Zohar said that since the company went public in 2013, he had expected it to be profitable in 2016, but more conversions and lower marketing expenses pushed forward the timetable, he noted. Wix raised its 2015 adjusted EBITDA estimate to $10 million-$12 million, from $7 million-$9 million, in the company’s third upward revision since February. It also expects 2015 revenue of $201 million-$203 million, revised from a prior $200 million-$204 million. Wix shares nevertheless were down 9.6% at $24.77 in New York, midday local time. (Reuters)

TowerJazz shares rally on strong second-quarter profit

TowerJazz shares soared after it posted second-quarter profit yesterday, which beat estimates due to rising revenue from its largest customers and a lower debt level. The chip maker said it earned 70 cents a share in the quarter excluding one-time items, compared with 62 cents a year earlier. Revenue edged up to $236 million, from $234 million. The company had been forecast to earn 52 cents per share on revenue of $235 million, according to Thomson Reuters I/B/E/S. On a GAAP accounting basis, TowerJazz posted EPS of 10 cents, its first by that measure in 18 years. “If you look at 2016 and 2017, momentum is very strong,” said CEO Russell Ellwanger. “Within the next few years we will need increased capacity to meet demand,” he said, adding the company was looking at possible acquisitions. TowerJazz shares closed up 7.7% at 52.18 shekels ($13.70). (Reuters)

TA-25 returns to record territory

The TA-25 entered record-high territory again yesterday, boosted by Teva Pharmaceuticals and tech shares. The benchmark index and the TA-100 both finished up 0.7%, at 1,723.56 and 1,489.01 points, respectively, although turnover was on the low side at 1.08 billion shekels ($284 million). Teva led the most actives on a 1.8% gain to 271.20 shekels, while the TA-BlueTech index advanced 1.4%, paced by gains of 6.6% for Sapiens to 43.30 and 4.8% for Perion Network to 10.54; Sapiens reported double-digit growth in quarterly sales. Defying the tech rally, Allot Communications extended post-second-quarter earnings losses, dropping 3% to end at 19.91. Perrigo was virtually unchanged at 723.90 after it reported that second-quarter net income, not counting one-time and other items, climbed 37% to $320 million (or $2.18 a diluted share), topping Wall Street expectations of $1.97 a share. Intec Pharma plunged close to 19% to 22.75 shekels, a day after a weak start for its Wall Street debut. In foreign currency trading, the dollar strengthened more than 0.6% to a Bank of Israel rate of 3.807. (Dror Raich)