Back to top

Soft Drink Stocks' Q3 Earnings Slated for Nov 10: CCE, COT

Read MoreHide Full Article

With the Q3 earnings season drawing to a close, results so far have displayed an improvement over the preceding quarters. According to the latest Earnings Preview , 72.8% of the 423 S&P 500 members have posted positive earnings surprises while 55.1% have topped revenue expectations.

Coming to the Consumer Staples sector, we note that 78.1% of the companies in the S&P 500 index have already reported their results as of Nov 4. Among these, 76% have surpassed earnings estimates while 36% beat revenue expectations. Total earnings for these companies increased 6.7% on 0.7% higher revenues.

Efficient pricing, solid cost-saving initiatives, lucrative acquisitions and efforts to enhance product portfolio cushion these companies from macroeconomic hurdles, driving their bottom lines.

The beverage (soft drink) sector is part of the consumer staples sector and has so far reported decent earnings this season. Higher sales of the non-carbonated drinks, pricing gains, lower costs of key raw materials, cost reductions along with productivity gains and overall better execution have aided these soft drink companies to deliver impressive results in the past few quarters. We saw leading names like PepsiCo Inc. (PEP - Free Report) , Dr. Pepper Snapple Inc. (DPS - Free Report) and Coca Cola Company (KO - Free Report) deliver stellar Q3 results despite currency headwinds and sluggishness in emerging markets.

Let’s take a look at what’s in store for two major soft drink stocks which are scheduled to release their third-quarter 2016 numbers on Nov 10.

Coca-Cola European Partners Plc (CCE - Free Report) is a consumer packaged goods company engaged in producing, distributing and marketing non-alcoholic ready-to-drink beverages.

As per our model, a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to beat earnings.

Thus, Coca-Cola European is not likely to beat earnings this quarter as it has an Earnings ESP of 0.00% and a Zacks Rank #5 (Strong Sell).

Last quarter, the company posted a negative earnings surprise of 13.7%. Moreover, the trailing four-quarter average earnings surprise stands at a negative 0.9%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

COCA-COLA EU PT Price and EPS Surprise


For the third quarter, the Zacks Consensus Estimate for earnings is pegged at 72 cents, reflecting a decline of 14.5% year over year, while the consensus for revenues is at $3.27 billion, implying 79.3% year-over-year growth.

Cott Corporation (COT - Free Report) is one of the world's largest non-alcoholic beverage companies and the world's largest retailer brand soft drink provider.

Our model hints at a beat for Cott as it has an Earnings ESP of +16.67% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here

Last quarter, the company posted a positive earnings surprise of 15.38%. The company reported positive earnings surprises in three of the past four quarters, with an average beat of 105.51%.

COTT CORP QUE Price and EPS Surprise

For the third quarter, the Zacks Consensus Estimate for earnings is pegged at 6 cents, reflecting a decline of 36.1% year over year, while the consensus for revenues is at $859.4 million, implying a 13.7% year-over-year rise.

Now See Our Private Investment Ideas

While the above ideas are being shared with the public, other trades are hidden from everyone but selected members. Would you like to peek behind the curtain and view them? Starting today, for the next month, you can follow all Zacks' private buys and sells in real time from value to momentum . . . from stocks under $10 to ETF and option moves . . . from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy). You can even look inside portfolios so exclusive that they are normally closed to new investors. Click here for Zacks' secret trades >>

More from Zacks Analyst Blog

You May Like