Coca-Cola Enterprises Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Coca-Cola Enterprises (NYSE:CCE) will unveil its latest earnings on Thursday, October 25, 2012. Coca-Cola Enterprises makes and distributes soft drinks to customers in the U.S, Canada, and certain Caribbean islands.

Coca-Cola Enterprises Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 69 cents per share, a decline of 4.2% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 74 cents. Between one and three months ago, the average estimate moved down. It has risen from 68 cents during the last month. For the year, analysts are projecting profit of $2.23 per share, a rise of 2.3% from last year.

Past Earnings Performance: The company fell in line with estimates last quarter after topping forecasts the quarter before. After coming in above the mean estimate by 3 cents in the first quarter, the company fell in line with expectations by reporting net income of 73 cents per share last quarter.

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A Look Back: In the second quarter, profit fell 16.7% to $205 million (67 cents a share) from $246 million (74 cents a share) the year earlier, meeting analyst expectations. Revenue fell 8.3% to $2.21 billion from $2.41 billion.

Stock Price Performance: Between July 26, 2012 and October 19, 2012, the stock price rose $2.11 (7.3%), from $29.09 to $31.20. The stock price saw one of its best stretches over the last year between July 20, 2012 and July 27, 2012, when shares rose for six straight days, increasing 10.7% (+$2.86) over that span. It saw one of its worst periods between June 19, 2012 and June 26, 2012 when shares fell for six straight days, dropping 4% (-$1.11) over that span.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.2 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term. The company regressed in this liquidity measure from 1.26 in the first quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 15.6% to $2.35 billion while assets rose 10.1% to $2.83 billion.

Key Stats:

On the top line, the company is looking to get back on the right track after last quarter’s drop snapped a string of revenue increases. Revenue rose 27.3% in the third quarter of the last fiscal year, 5.5% in the fourth quarter of the last fiscal year and 1.3%in the first quarter before dropping in the second quarter.

The company is looking to get back on track with this earnings announcement after a profit drop last quarter snapped a positive string of results. Net income rose 36.5% in the third quarter of the last fiscal year, 16.5% in the fourth quarter of the last fiscal year and 2.8% in the first quarter before declining in the second quarter.

Analyst Ratings: With six analysts rating the stock as a buy, none rating it as a sell and six rating it as a hold, there are indications of a bullish outlook.

Wall St. Revenue Expectations: Analysts are projecting a decline of 1.9% in revenue from the year-earlier quarter to $2.1 billion.

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

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