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.
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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.
