Cott Earnings: Here’s Why Investors are Happy Now

Cott Corporation (NYSE:COT) delivered a profit 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. Shares are up 3.7%.

Cott Corporation Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 23.08% to $0.20 in the quarter versus EPS of $0.26 in the year-earlier quarter.

Revenue: Decreased 9.91% to $563.8 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Cott Corporation reported adjusted EPS income of $0.20 per share. By that measure, the company missed the mean analyst estimate of $0.21. It missed the average revenue estimate of $605.48 million.

Quoting Management: “Our second quarter results continued to reflect the same challenging market and operating trends that impacted our volume and revenue performance in the first quarter,” commented Jerry Fowden, Cott’s Chief Executive Officer. “During the quarter, we continued with our 4 C’s approach and announced various SG&A reduction initiatives in line with our low cost philosophy. As part of our capital deployment strategy, we also repurchased approximately $6 million of outstanding shares and approved a quarterly dividend of CAD$0.06. As we look to the second half of the year, we currently expect our top and bottom line performance trends to improve compared to the first half,” continued Mr. Fowden.

Key Stats (on next page)…

Revenue increased 11.56% from $505.4 million in the previous quarter. EPS increased to $0.20 in the quarter versus EPS of $0.00 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 $0.18 to a profit $0.17. For the current year, the average estimate has moved down from a profit of $0.51 to a profit of $0.47 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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