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SodaStream Bulls See Hope for U.S. Comeback After Earnings Beat

SodaStream International Ltd., the Israeli maker of at-home carbonation machines, has certainly tested the faith of bullish investors in the past 12 months.

Now, more than a year into his plan to revive slumping profit at the company, Chief Executive Officer Daniel Birnbaum has given them something to cheer about. First-quarter profit and sales beat estimates by wide margins, sending the stock up 24 percent last week to $18.45, its best weekly performance in almost five years. The company’s Tel Aviv-traded stocks soared 9 percent to 69.30 shekels, the highest level since Dec. 31 at 10:54 a.m.

Birnbaum attributed the earnings surprise to strong demand in Europe and a new marketing strategy casting his sparkling-water machines as a health-conscious alternative to sugary sodas. But his biggest challenge, replicating the European success by growing household penetration in the U.S., has so far proved elusive.

“They’re at the inflection point, and we anticipate a rebound in the U.S. soon,” Joshua Schachter, who helps oversee about $4.7 billion including SodaStream shares, at Snow Capital Management in Sewickley, Pennsylvania, said by...