SodaStream International Ltd. surged the most on record in New York after the Israeli maker of soda machines said it will roll out its products at Wal-Mart Stores Inc. in the U.S. by the end of May.
Shares of the Airport City, Israel-based company climbed 26 percent to $36.90 by the close by in New York, the sharpest rise since the company’s initial public offering in November 2010.
SodaStream will begin selling two of its products this month at 2,900 Wal-Mart stores in the U.S., Daniel Birnbaum, chief executive officer of SodaStream, said in a conference call with analysts today after the company reported earnings. Wal- Mart is the world’s largest retailer.
“Wal-Mart is a bridge between their current sales in big- box retailers to where they want to be selling, which is supermarkets,” Jim Chartier, an analyst at Monness Crespi Hardt & Co., who has a buy rating on the stock, said by phone from New York today. “Wal-Mart has very high foot traffic. It’s a big deal and will help them sell a lot more machines.”
SodaStream’s first-quarter profit rose to 55 cents per share in the first quarter from 35 cents a year ago, beating the 44-cent median estimate of seven analysts surveyed by Bloomberg.
Please consider a donation. Besides the work we do - which includes scoops, exposing the haters and posting original and entertaining content - this blog takes up not just a lot of time but also money. Your support is appreciated.