We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Coca-Cola European (CCE) Issues Guidance for 2016 & 2017
Read MoreHide Full Article
Coca-Cola European Partners plc. , also known as CCEP, recently provided guidance for full-year 2016 and 2017.
CCEP was formed on May 28, 2016, through the combination of Coca-Cola Enterprises or CCE, Coca-Cola Iberian Partners or CCIP and CCEG or Coca-Cola Erfrischungsgetränke AG.
Based on revenues, CCEP is the world’s largest independent Coca-Cola bottler. It serves over 300 million consumers across Western Europe, including Andorra, Belgium, continental France, Germany, Great Britain, to name a few.
Investors should note that shares of this Zacks Rank #5 (Strong Sell) stock declined 14.2% in the last six months, wider than the Zacks categorized Beverages-Soft Drink industry’s 7% decline. Earnings estimates the current year have also declined 10.8% in the last 60 days.
2016 Guidance
CCEP now expects approximately 1% revenue growth in full-year 2016.
Pro forma comparable diluted earnings per share are expected to be at the high end of €1.86 to €1.90 range, inclusive of an expected negative currency impact of approximately 4.5%.
It also expects operating profit growth in the modest mid-single-digit, and diluted earnings per share growth in a mid-teen range (on a pro forma comparable and foreign exchange-neutral basis).
Weighted average cost of debt is expected to be approximately 2% and pro forma comparable effective tax rate is likely to be around 25 %.
CCEP expects year-end net debt to EDITDA of about 3 1/4 times. CCEP does not expect to repurchase shares in 2016.
It also expects operating profit and diluted earnings per share to rise high single-digits (on a pro forma comparable and foreign exchange-neutral basis). Currency translation is expected to hurt earnings per share. Core operating profit growth is anticipated to modestly exceed revenue growth.
Free cash flow is expected in the band of €700 million to €800 million, inclusive of the expected benefit from improved working capital, offset by the impact of restructuring, integration and deal costs.
Capital expenditures are projected in the €575–€625 million range, including €75 million to €100 million of capital expenditures related to synergies.
Weighted-average cost of debt is expected to be approximately 2%. CCEP expects year-end net debt to EDITDA to be under three times.
Comparable effective tax rate is expected in the 24% to 26% range. CCEP does not expect to repurchase shares in 2017.
CCEP expects to exit 2017 with run-rate savings of approximately one-half of the target.
Other Updates
CEO of CCEP, John F. Brock, will retire and be succeeded by Damian Gammell, currently chief operating officer, effective Dec 28, 2016.
CCEP declared a regular quarterly dividend of €0.17 per share payable Jan 13, 2017 to shareholders of record as on Dec 30, 2016.
CCEP maintains the pre-tax run-rate savings projection at the range of €315–€340 million by mid-2019.
Stocks to Consider
Better-ranked stocks in the Consumer Staples sector include Embotelladora Andina S.A. (AKO.B - Free Report) , Mondelez International, Inc. (MDLZ - Free Report) , The Hershey Company (HSY - Free Report) .
Embotelladora’s earnings are likely to decline 6.5% in 2016.
Mondelez’s – Zacks Rank #2 (Buy) – earnings are expected to increase 11.4% in 2016.
Hershey, also a Zacks Rank #2 stock, is expected to see a 4.8% rise in 2016 earnings.
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Coca-Cola European (CCE) Issues Guidance for 2016 & 2017
Coca-Cola European Partners plc. , also known as CCEP, recently provided guidance for full-year 2016 and 2017.
CCEP was formed on May 28, 2016, through the combination of Coca-Cola Enterprises or CCE, Coca-Cola Iberian Partners or CCIP and CCEG or Coca-Cola Erfrischungsgetränke AG.
Based on revenues, CCEP is the world’s largest independent Coca-Cola bottler. It serves over 300 million consumers across Western Europe, including Andorra, Belgium, continental France, Germany, Great Britain, to name a few.
Investors should note that shares of this Zacks Rank #5 (Strong Sell) stock declined 14.2% in the last six months, wider than the Zacks categorized Beverages-Soft Drink industry’s 7% decline. Earnings estimates the current year have also declined 10.8% in the last 60 days.
2016 Guidance
CCEP now expects approximately 1% revenue growth in full-year 2016.
Pro forma comparable diluted earnings per share are expected to be at the high end of €1.86 to €1.90 range, inclusive of an expected negative currency impact of approximately 4.5%.
It also expects operating profit growth in the modest mid-single-digit, and diluted earnings per share growth in a mid-teen range (on a pro forma comparable and foreign exchange-neutral basis).
Weighted average cost of debt is expected to be approximately 2% and pro forma comparable effective tax rate is likely to be around 25 %.
CCEP expects year-end net debt to EDITDA of about 3 1/4 times. CCEP does not expect to repurchase shares in 2016.
2017 Guidance
CCEP expects modest low single-digit revenue growth.
It also expects operating profit and diluted earnings per share to rise high single-digits (on a pro forma comparable and foreign exchange-neutral basis). Currency translation is expected to hurt earnings per share. Core operating profit growth is anticipated to modestly exceed revenue growth.
Free cash flow is expected in the band of €700 million to €800 million, inclusive of the expected benefit from improved working capital, offset by the impact of restructuring, integration and deal costs.
Capital expenditures are projected in the €575–€625 million range, including €75 million to €100 million of capital expenditures related to synergies.
Weighted-average cost of debt is expected to be approximately 2%. CCEP expects year-end net debt to EDITDA to be under three times.
Comparable effective tax rate is expected in the 24% to 26% range. CCEP does not expect to repurchase shares in 2017.
CCEP expects to exit 2017 with run-rate savings of approximately one-half of the target.
Other Updates
CEO of CCEP, John F. Brock, will retire and be succeeded by Damian Gammell, currently chief operating officer, effective Dec 28, 2016.
CCEP declared a regular quarterly dividend of €0.17 per share payable Jan 13, 2017 to shareholders of record as on Dec 30, 2016.
CCEP maintains the pre-tax run-rate savings projection at the range of €315–€340 million by mid-2019.
Stocks to Consider
Better-ranked stocks in the Consumer Staples sector include Embotelladora Andina S.A. (AKO.B - Free Report) , Mondelez International, Inc. (MDLZ - Free Report) , The Hershey Company (HSY - Free Report) .
Embotelladora sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Embotelladora’s earnings are likely to decline 6.5% in 2016.
Mondelez’s – Zacks Rank #2 (Buy) – earnings are expected to increase 11.4% in 2016.
Hershey, also a Zacks Rank #2 stock, is expected to see a 4.8% rise in 2016 earnings.
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>