Cott Corporation (NYSE:COT) had a loss and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.
Cott Corporation Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased to $0.00 in the quarter versus EPS of $0.06 in the year-earlier quarter.
Revenue: Decreased 3.51% to $505.4 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Cott Corporation reported adjusted EPS of $0 per share. By that measure, the company missed the mean analyst estimate of $0.09. It missed the average revenue estimate of $508.53 million.
Quoting Management: “During the first quarter, soft volumes alongside a general market decline in the carbonated soft drink category resulted in unfavorable fixed cost absorption and adversely impacted our gross margin and overall profitability,” commented Jerry Fowden, Cott’s Chief Executive Officer. “We remain firmly focused on being a low cost, high service producer while following our 4 C’s of Customer, Cost, Capex and Cash. Meanwhile, we continue to implement our capital deployment strategy which includes the payment of a quarterly dividend, the renewal of our share repurchase program and the reduction of debt and interest costs,” continued Mr. Fowden.
Key Stats (on next page)…
Revenue decreased 2.28% from $517.2 million in the previous quarter. EPS decreased to $0.00 in the quarter versus EPS of $0.02 in the previous quarter.
Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.32 to a profit $0.31. For the current year, the average estimate has moved down from a profit of $0.71 to a profit of $0.65 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)