SodaStream International Ltd. (NASDAQ: SODA) reported fourth-quarter and full-year fiscal 2014 results before markets opened Wednesday. The home beverage carbonation system maker reported quarterly adjusted diluted earnings per share (EPS) $0.35 on revenues of $126.5 million. In the same period a year ago, SodaStream reported EPS of $0.03 on revenue of $168.1 million. Fourth-quarter results also compare to the Thomson Reuters consensus estimates for EPS of $0.18 and $127.09 million in revenue.

For the full year, SodaStream posted adjusted EPS of $1.31 on annual revenues of $511.8 million, down from EPS of $1.96 on revenues of $562.7 million in 2013. The consensus estimates called for EPS of $1.14 on revenues of $512.28 million.

On an International Financial Reporting Standards (IFRS) basis, SodaStream posted a fourth-quarter loss of $0.39, which included a per-share restructuring charge of $0.74. On the same basis, the company’s full-year EPS is $0.58, including a per-share charge of $0.73 for restructuring.

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While earnings look okay, the sharp drop in revenues is chilling the share price Wednesday morning, even though analysts had set the bar pretty low. Revenues were in line with estimates but down about 25% year-over-year for the quarter and 9% on the year. The company blamed the fourth-quarter drop on lower demand for SodaStream’s products during the holidays, partly as a result of eliminating discounts and promotional activities that were in place in 2013 and partly as a result of the strong dollar.

SodaStream’s quarterly sales of its sparkling water makers fell 34% year-over-year and flavor sales fell 38%. Carbon dioxide refill sales rose 17%.

The company’s CEO said:

We are confident that repositioning the brand around health & wellness and launching a completely new portfolio of water enhanced flavors fits perfectly with the changing nature of consumer demands and will reaccelerate participation in our home carbonation system. As we announced, in conjunction with our growth plan, we have begun to reform our operational and organizational structure to better support our new strategy and drive improved efficiencies. While our actions will impact our near-term performance, we believe they will put us on stronger footing for delivering long-term profitable growth and increased shareholder value.

The company did not offer any guidance for the new fiscal year, but analysts have estimated first-quarter EPS at $0.09 on revenues of $111.63 million. For the full year, analysts are looking for EPS of $1.23 on revenues of $521.48 million. Once again, the bar has been set pretty low.

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Shares traded down about 6% shortly after the bell Wednesday morning at $17.77, in a 52-week range of $17.50 to $47.30. The low was posted early Wednesday morning. Thomson Reuters had a consensus analyst price target of around $23.00 before the results were announced.

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