Coca-Cola Enterprises Inc. Earnings: Profit Increases Again

S&P 500 (NYSE:SPY) component Coca-Cola Enterprises Inc. (NYSE:CCE) reported net income above Wall Street’s expectations for the first 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 First Quarter

Results: Net income for Coca-Cola Enterprises Inc. rose to $109 million (35 cents per share) vs. $106 million (31 cents per share) in the same quarter a year earlier. This marks a rise of 2.8% from the year-earlier quarter.

Revenue: Rose 1.3% to $1.87 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Coca-Cola Enterprises Inc. reported adjusted net income of 36 cents per share. By that measure, the company beat the mean estimate of 33 cents per share. Analysts were expecting revenue of $1.84 billion.

Quoting Management: “Our results demonstrate our ability to deliver even as we worked through a challenging first quarter,” said John F. Brock, chairman and chief executive officer. “We have outstanding sales initiatives and operating plans in place that will enhance our marketplace presence, enable us to closely control expenses, and ultimately, deliver solid growth for the full year.”

Key Stats:

The company has now seen its net income increase for three consecutive quarters. In the fourth quarter of the last fiscal year, net income rose 16.5% and in the third quarter of the last fiscal year, the figure rose 36.5%.

Gross margin shrank 0.7 percentage point to 35.1%. The contraction appeared to be driven by increased costs, which rose 2.5% from the year earlier quarter while revenue rose 1.3%.

Revenue has now gone up for three straight quarters. In the fourth quarter of the last fiscal year, revenue rose 5.5% to $1.89 billion while the figure rose 27.3% in the third quarter of the last fiscal year from the year earlier.

The company beat estimates last quarter after being in line with expectations in the fourth quarter of the last fiscal year with net income of 36 cents per share.

Looking Forward: Expectations for the company’s next-quarter results are lower than they have been. Over the past sixty days, the average estimate for second quarter has fallen from 80 cents per share to 79 cents. Over the past sixty days, the average estimate for the fiscal year has reached $2.28 abs per share, a decline from $2.29.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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