Coca-Cola Enterprises Third Quarter Profit Beats View, Outlook Raised (CCE)

Created by Dividend.com

Beverage bottler Coca-Cola Enterprises Inc. (CCE) said Wednesday that its third quarter profit rose 15% from last year, beating expectations, and the company raised its full-year earnings forecast.

The Atlanta-based company, which is the Coca-Cola Company’s (KO) biggest bottler, reported third quarter net income of $247 million, or 50 cents per share, compared with $214 million, or 44 cents per share, in the year-ago period. Revenue fell 3% from last year, however, to $5.57 billion.

On average, Wall Street analysts expected a lower profit of 46 cents per share, albeit on higher revenue of $5.71 billion.

Looking ahead, the company raised its full-year earnings guidance to a range of $1.54 to $1.57 per share, up from a previous outlook for $1.44 to $1.49. Analysts currently expect $1.52 per share.

Coca-Cola Enterprises shares fell 45 cents, or -2.3%, in morning trading Wednesday.

The Bottom Line
We have avoided shares of CCE since our early June coverage began last year, when the stock was trading at $19.49. The company has a 1.60% dividend yield, based on last night’s closing stock price of $20.02. The stock has technical support in the $16.50-$18 price area. If the stock can firm up, we see overhead resistance around the $22-$23 price levels. We would remain on the sidelines for now.

Coca-Cola Enterprises Inc. (CCE) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

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