Why sodastream is tanking wednesday

SodaStream headquarters in Tel Aviv Bloomberg | Bloomberg | Getty Images SodaStream tumbled 9.2 percent to $57.86 on Wednesday after falling short on sales expectations. The manufacturer of

home carbonation kits reported third-quarter revenue of $144.6 million, 28.5 percent higher than a year earlier. Revenue missed expectations of $145.2 million from analysts surveyed by

Yahoo! Finance, though earnings of 90 cents beat expectations by 12 cents. The Israel-based company said slower growth wasn't indicative of consumer demand but rather retailers'

inventory management. "Retailers are rebalancing their inventories, and it's not related to SodaStream," said CEO Daniel Birnbaum during a conference call. "There is that

retail adjustment, and it is material." MORE FROM THESTREET.COM: Zynga investors should thank Mark Pincus 4 Stocks Under $10 Moving Higher 5 Halloween Myths That Cost Everyone Money By

region, sales increased 29 percent and 43 percent year over year in the Americas and Western Europe, respectively. In Asia-Pacific, revenue declined 21 percent due to business struggles in

Japan. "We're disappointed that our Japanese distributor is not properly supporting the brand with marketing investments and retail expansion," said Birnbaum. "We remain

optimistic about the potential for SodaStream in Japan and we're evaluating the best options for this business going forward." TheStreet Ratings team rates SodaStream International

as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about its recommendation: "We rate SodaStream International a BUY. This is driven by some important

positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's

strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth, expanding profit margins, solid stock price performance and

largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows weak operating cash flow." —_By

TheStreet.com's __Keris Alison Lahiff_ Additional News: Coca-Cola profit rises despite costs, slow economy Additional Views: When it's time to change: Craft brewers cash out

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