Back to top

Analyst Blog

Zacks Equity Research

Coca-Cola Enterprises Reiterates 2013 View

CCE KO BMY CL

 ZacksTrade Now

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

Coca-Cola Enterprises Inc (CCE - Analyst Report) recently re-affirmed its fiscal 2013 guidance at the Barclays Back-to-School Conference in Boston. Coca-Cola Enterprises, one of the largest bottlers of The Coca Cola Co. (KO - Analyst Report), also named its new chief financial officer (CFO).

Fiscal 2013 Outlook Retained

Coca-Cola Enterprises now expects its earnings per share at the higher end of the previously stated range of $2.45 to $2.50. The guidance includes a less than 1% positive impact of currency translation at current rates.

The company continues to expect net sales, on a constant currency basis, to grow at a low single-digit rate. Operating income is expected to grow in a low to mid-single-digit range in fiscal 2013.

In addition, at the Barclays conference, the company stated plans to repurchase at least $1 billion of its shares by the end of fiscal 2013, under its current $1.5 billion share repurchase program which began in Jan 2013. The company also reiterated its year-end net debt to EBITDA ratio expectation within its long-term range of 2½ to 3 times.

For fiscal 2013, Coca-Cola Enterprises expects free cash flow, including year-over-year increase in cash restructuring expenses, of approximately $500 million. Capital expenditure is expected in a range of $300 million to $325 million for fiscal 2013.

Cost of debt was reaffirmed at approximately 3%, while effective tax rate for 2013 is expected to be in a range of 26% - 28%.

New CFO

The bottling company also announced its new CFO at the conference. Manik ‘Nik’ Jhangiani will become the new CFO effective from Nov 1, 2013.  Jhangiani is currently the vice president of the European finance division of the company and has more than 25 years of experience in global finance and business leadership.

Jhangiani has worked with other multi-national organizations in the past, including Coca-Cola, Coca-Cola Hellenic Bottling Co, Colgate Palmolive Co (CL - Analyst Report), Bristol-Myers Squibb Co. (BMY - Analyst Report) and Deloitte & Touche. Prior to joining CCE, Jhangiani was CFO of Bharti Enterprises, which is one of the largest Indian multi-national companies. Coca-Cola Enterprises carries a Zacks Rank #3 (Hold).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
DIXIE GRP IN DXYN 15.84 +7.90%
BOFI HLDG IN BOFI 85.30 +4.97%
RAMBUS INC RMBS 12.31 +4.41%
VIPSHOP HOLD VIPS 148.73 +4.35%
NETFLIX INC NFLX 345.74 +4.32%