) fourth-quarter 2013 adjusted earnings of 54 cents per share
beat the Zacks Consensus Estimate of 52 cents by 3.8% and the
year-ago earnings of 45 cents by 20.0% driven by solid revenue
During the quarter, net sales grew approximately 6.0% year over
year to $2.03 billion but fell marginally short of the Zacks
Consensus Estimate of $2.05 billion by 1.0%. Excluding currency
translations, revenues grew 3.5% driven by improvement in
Volumes grew 2.5% in the quarter, same as the preceding quarter.
Volumes in the quarter were positively impacted by growth in
Coca-Cola trademark brands, particularly Coca-Cola Zero, and
energy segments. Net pricing per case decreased 0.5%, due to
higher cost of sales per case. Volumes grew 2.0% in continental
Europe. In Great Britain, volumes improved 2.5% due to strong
growth of Coca-Cola trademark beverages.
The company's cost of sales per case increased 1.0% in the
quarter. Adjusted operating income grew 9% on a currency neutral
basis to $232 million due to volume growth and expense control
Coca-Cola Enterprises, the western European bottler of
The Coca-Cola Company
), began its third share repurchase program worth $1.5 billion in
Jan 2013. In full year 2013, the company repurchased $1.0 billion
worth of its stock. In Dec 2013, the board of directors of
Coca-Cola Enterprises authorized a new $1 billion share
repurchase program, which is the company's fourth buyback program
since its inception in 2010. In 2014, the company expects to buy
back $800 million worth of shares.
Coca-Cola Enterprises' fiscal 2013 adjusted earnings of $2.51 per
share beat the Zacks Consensus Estimate of $2.50 by 0.4% and the
year-ago earnings of $2.26 by 11.1% driven by revenue increase,
currency tailwinds, and share buybacks. The company's full year
earnings exceeded the company's guided range of $2.45 to $2.50
per share. Currency translation had a favorable impact of 4 cents
During 2013, net sales grew approximately 2.0% year over year to
$8.21 billion, almost in line with the Zacks Consensus Estimate.
Excluding currency tailwinds, revenues grew 0.5% driven by
improvement in both volumes and pricing.
The company maintained its 2014 guidance. In 2014, adjusted
earnings are expected to grow approximately 10% in constant
currency terms. In addition, currency is expected to benefit 2014
earnings per share in the range of 3%-4%.
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.
Coca-Cola Enterprises expects free cash flow for full-year 2014
to be in the range of $600 million-$650 million. Capital
expenditures are expected to be approximately $350 million. The
company expects the weighted average cost of debt to be around
3%. The effective tax rate is expected in a range of 26% to 28%.
Coca-Cola Enterprises carries a Zacks Rank #3 (Hold). A
better-ranked beverage stock is
The WhiteWave Foods Co.
), which sports a Zacks Rank #1 (Strong Buy).
Monster Beverage Corp.
) with a Zacks Rank #2 (Buy) is another company worth considering
in the consumer staples sector.
COCA-COLA ENTRP (CCE): Free Stock Analysis
COCA COLA CO (KO): Free Stock Analysis Report
MONSTER BEVERAG (MNST): Free Stock Analysis
WHITEWAVE FOODS (WWAV): Free Stock Analysis
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