Sodastream International Ltd (NASDAQ:SODA) early Wednesday posted much better than expected fourth quarter earnings results, sending its shares soaring in morning trading.

Written by StockNews.com

The Israel-based sparkling water device maker reported Q4 EPS of $0.71, which blew away Wall Street’s consensus view of just $0.30.

Revenues rose 16.7% from last year to $131.8 million, also topping analysts’ estimate of $124.75 million.

Sodastream said its blockbuster earnings were driven by rising consumer demand for sparkling water makers and consumables, with the biggest growth coming in Germany, Canada, the United States, the Nordics, Switzerland, and Japan.

Gross margin expanded by 440 basis points in the latest period to 52.4%, up from 48.0% in the year-ago quarter. Better margins were driven by production optimization in SODA’s Lehavim plant, as well as price increases.

The company commented via press release:

“I am very pleased with the strong momentum we built throughout the year which continued in the fourth quarter with robust revenue growth and record high operating income,” commented Daniel Birnbaum, Chief Executive Officer of SodaStream. “Our 2016 full year performance underscores that the strategies we’ve implemented to build a global brand franchise and accelerate household penetration of our home carbonation system are working successfully.”

...Year-to-date, SODA has gained 29.47%, versus a 4.52% rise in the benchmark S&P 500 index during the same period.

SODA currently has a StockNews.com POWR Rating of A (Strong Buy), and is ranked #6 of 25 stocks in the Beverages category.