Coca-Cola Enterprises

Coca-Cola Enterprises (CCE - Analyst Report) continues to rally from its March low after recently posting strong first-quarter results. Estimates are up too, with the next-year estimate projecting 9% earnings growth.

Company Description

Coca-Cola Enterprises Inc. engages in the manufacture and distribution of non-alcohol beverages such as Coke, Powerade and Capri-Sun. The company was founded in 1944 and has a market cap of $8.25 billion.

First-Quarter Results

Coca-Cola stepped up and reported strong first-quarter results on April 29 that far ahead of expectations. Revenue was up 3% from last year to $5.05 billion. When excluding one-time items, earnings came in at 20 cents per share, blowing past the consensus of 5 cents.

The company has now matched or beat the consensus in each of the last four quarters, having done so by an average of 7 cents, or more than 100%.

Sales and Margin Growth

Coca-Cola noted that it made up for a 3% drop in its North American sales by increasing prices 10%. The company's European market, however, fared better, posting a volume increase of 5.5% from last year on top of a 2.5% price hike.

Guidance Raised

Coca-Cola also provided bullish guidance while reporting its results, saying it now expects full-year earnings between $1.24 and $1.29 per share. The next-year estimate has risen accordingly, tacking on 7 cents and climbing to $1.43 per share, a 9% earnings growth projection.

The Chart

Much like many other stocks, shares of CCE have been rallying with the market for the last 2 months, climbing from around $9.50 in early March to a recent high above $17. In spite of the big jump, valuations still look reasonable. Take a look at the chart below.