SodaStream International Ltd. (SODA - Free Report) is slated to report first-quarter 2017 results on May 10, before the opening bell.

Last quarter, the Israel-based manufacturer of household soda posted a positive earnings surprise of 129.0%. The company also clocked positive earnings surprises in each of the past four quarters, averaging 126.15%.

Let’s see how things are shaping up prior to this announcement.

Factors to Consider

The growing popularity of sparkling water is driving SodaStream, as its cost effective beverage carbonation systems help consumers transform ordinary tap water into soft drinks and sparkling water. Sparkling water maker unit sales, which rose 22% in 2016, can be expected to increase further in the soon-to-be-reported quarter.

Given the current trend in the shift in consumer preferences away from sweetened beverages toward sparkling water, SodaStream is repositioning itself in order to capitalize on this growing demand. The Aqua Fizz launch marks SodaStream’s strategic shift from sweetened beverages toward sparkling water.

However, currency translation is a major headwind since a large portion of its business is concentrated in Europe along with several other countries outside the U.S.

Notably, over the past 90 days, positive revisions have helped raise the consensus estimate by 15.2% for SodaStream to 38 cents per share in the to-be-reported quarter, reflecting an increase of over 31% on a year-over-year basis. Also, revenues are expected to rise 8.8% to $109.8 million in the quarter.

Earnings Whispers

Our proven model does not conclusively show that SodaStream is likely to beat earnings this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.

Zacks ESP: SodaStream has an Earnings ESP of 0.00%. That is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 38 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

SodaStream International Ltd. Price and EPS Surprise

SodaStream International Ltd. Price and EPS Surprise | SodaStream International Ltd. Quote

Zacks Rank: SodaStream has a Zacks Rank #3 which increases the predictive power of ESP. However, the company’s 0.00% ESP makes surprise prediction difficult.

Meanwhile, we caution against stocks with Zacks Ranks #4 and 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.

Stocks to Consider

Here are some companies in the broader consumer discretionary sector you may want to consider as our model shows they have the right combination of elements to post an earnings beat this quarter:

Deckers Outdoor Corp. (DECK - Free Report), with an Earnings ESP of +50% and a Zacks Rank #2, is expected to report its quarterly results on May 25. YYou can see the complete list of today’s Zacks #1 Rank stocks here.

Wolverine World Wide, Inc. (WWW - Free Report) has an Earnings ESP of +3.23% and a Zacks Rank #3. It is expected to release its quarterly results on May 10.

Norwegian Cruise Line Holdings Ltd. (NCLH - Free Report) has an Earnings ESP of +2.70% and a Zacks Rank #3. The company is expected to report its quarterly results on May 10.