), the Western European bottler of
The Coca-Cola Company
), reaffirmed its financial guidance for 2014 at the Deutsche Bank
Global Consumer Conference in Paris.
In 2014, adjusted earnings are expected to increase
approximately 10% in constant currency terms. In addition,
according to recent rates, currency is expected to benefit 2014
earnings per share by approximately 5%.
While adjusted constant currency net sales are expected to grow
in the low single-digit range, operating income is expected to grow
in the mid single-digit range. Operating income growth is expected
to be weighted toward the second half of the year.
Management's 2014 revenue and operating income outlooks are
below the long-term targets of 4-6% and 6-8%, respectively,
anticipating continued operating/marketplace challenges.
Coca-Cola Enterprises is geographically focused on Western
Europe and is thus exposed to the economic uncertainties of this
region, including debt burdens of some of these countries and the
challenging consumer spending environment. The company has been
facing several operating and marketplace challenges, such as steep
price competition in Great Britain, overall soft macroeconomic
conditions and difficult beverage market conditions in France due
to the increase in French excise tax.
Though the earnings per share guidance of approximately 10%
growth is above the long-term target of high single-digit range
growth, it will be mostly driven by share buybacks.
Coca-Cola Enterprises expects free cash flow for full-year 2014
to be $650 million. Capital expenditures are still expected to be
approximately $350 million. The company expects the weighted
average cost of debt to be around 3%. Effective tax rate is
expected within 26% to 28%.
Other Stocks to Consider
Coca-Cola Enterprises carries a Zacks Rank #3 (Hold).
Better-ranked beverage stocks include
The WhiteWave Foods Company
Dr Pepper Snapple Group, Inc.
). Both the companies carry a Zacks Rank #2 (Buy).
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COCA-COLA ENTRP (CCE): Free Stock Analysis
COCA COLA CO (KO): Free Stock Analysis Report
DR PEPPER SNAPL (DPS): Free Stock Analysis
WHITEWAVE FOODS (WWAV): Free Stock Analysis
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