Coca-Cola Enterprises Inc. Earnings Cheat Sheet: Beats Expectations

S&P 500 (NYSE:SPY) component Coca-Cola Enterprises Inc. (NYSE:CCE) reported net income above Wall Street’s expectations for the third quarter. Coca-Cola Enterprises makes and distributes soft drinks to customers in the U.S, Canada, and certain Caribbean islands.

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Coca-Cola Earnings Cheat Sheet for the Third Quarter

Results: Net income for the soft drink company rose to $284 million (88 cents per share) vs. $208 million (61 cents per share) in the same quarter a year earlier. This marks a rise of 36.5% from the year earlier quarter.

Revenue: Rose 27.3% to $2.14 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: CCE reported adjusted earnings of 72 cents per share, beating the mean analyst estimate of 69 cents per share. Analysts were expecting revenue of $2.16 billion.

Quoting Management: “Our business continues to generate solid results, driven by outstanding execution, increasing effectiveness, and cost control,” said John F. Brock, chairman and chief executive officer. “By maintaining our focus on our key operating strategies, we were able to work through a challenging quarter, and we are on track to deliver against our improved full-year guidance.”

Key Stats:

Last quarter marked the fifth straight quarter that the company saw shrinking gross margins as gross margin fell 0.9 percentage point to 37.8% from the year earlier quarter. Over that time, margins have contracted on average 1.9 percentage points per quarter on a year-over-year basis.

A year-over-year revenue increase last quarter snaps a streak of four consecutive quarters of revenue declines. The worst quarter in that span was the third quarter of the last fiscal year, which saw a 69.8% decrease.

The company has now beaten estimates the last two quarters. In the second quarter, it topped expectations with net income of 76 cents versus a mean estimate of net income of 74 cents per share.

Net income has dropped 4.4% year over year on average across the last five quarters. Performance was hurt by a 30.9% decline in the second quarter from the year earlier quarter.

Looking Forward: Over the last 30 days, analysts have not been optimistic about the company’s next quarter performance. The average estimate for the fourth quarter is now 34 cents per share, down from 36 cents. The average estimate for the fiscal year is $2.13 per share, falling from $2.15 thirty days ago.

Competitors to Watch: The Coca-Cola Company (NYSE:KO), PepsiCo, Inc. (NYSE:PEP), Dr Pepper Snapple Group Inc. (NYSE:DPS), Hansen Natural Corporation (NASDAQ:HANS), Coca-Cola Bottling Co. Consolidated (NASDAQ:COKE), Heckmann Corporation (NYSE:HEK), Coca-Cola HBC S.A. (NYSE:CCH), Coca-Cola FEMSA, S.A.B. de C.V. (NYSE:KOF), and Fomento Economico Mexicano SAB (NYSE:FMX).

Investing Insights: Here’s Why Chipotle’s Stock Keeps Winning.

(Source: Xignite Financials)