Sodastream stock pops after earnings

A Palestinian labourer works at the Israeli SodaStream factory in the Mishor Adumim industrial park, next to the West Bank settlement of Maale Adumim.
Menahem Kahana | AFP | Getty Images
A Palestinian labourer works at the Israeli SodaStream factory in the Mishor Adumim industrial park, next to the West Bank settlement of Maale Adumim.

Shares of Sodastream rose Tuesday after the appliance maker's earnings were boosted by a pivot toward sparkling water.

The Israeli company, which makes home beverage carbonation systems, posted diluted earnings of 29 cents per share on revenue of $100.9 million in the latest quarter. Shares closed up nearly 24 percent at $18.22.

The 10.4 percent increase in sales was driven by strong gains in Europe, and new messaging focused on water, rather than soda, CEO Daniel Birnbaum said, in a statement.

The shift comes as more than 60 percent of Americans say they are trying to avoid drinking soda, according to a poll by Gallup. Meanwhile, the soda business has fizzled as soft-drink giants like Coke and Pepsi also move to water and snacks, Caroline Levy, CLSA beverage analyst, told CNBC last month.

"Our first-quarter results demonstrate that our growth plan, which centers on repositioning the SodaStream brand around sparkling water and building a stronger, more efficient organization, has started to take hold," Birnbaum said.

Shares of Sodastream are down 15.4 percent over the past year.