Coca-Cola Enterprises: The Glass May Be Half-Empty
Timberwolf Equity Research • 11 Comments
Timberwolf Equity Research • 11 Comments
Fri, Jun. 24, 11:05 AM
- Among consumer stocks covered by Susquehanna, the analysts say Mondelez (MDLZ -4.3%) and Coca-Cola European Partners (CCE -5.4%), along with Sodastream (SODA -2.7%), have the greatest earnings downside from a euro and pound that have gotten, well, pounded.
- The euro is currently down 2.3% against the dollar, while the pound is down 8.5%.
- "For those seeking to buy the dip, we would prefer MDLZ over CCE," the firm says, noting that 100% of CCE's revenues are exposed to those two currencies, it faces structural risks, and Coca-Cola's 48% ownership of CCE makes it an unlikely acquisition target.
- Acquisitive companies with U.S. dollar assets could go hunting in Europe, the analysts say, pointing to likely suitor Kraft Heinz (KHC -1.8%) -- a top pick for the firm, along with TreeHouse Foods (THS -0.6%) and Molson Coors (TAP -3.3%).
- Meanwhile, the possible ascendance of UKIP leader Nigel Farage in the UK or "anything that makes a Donald Trump presidency more likely" is bad for Mexico-heavy Constellation Brands (STZ -1.2%).
Tue, May 31, 12:50 PM
Tue, May 31, 12:01 PM
Tue, May 31, 9:15 AM
Tue, May 24, 5:35 PM
- Arthur J. Gallagher (AJG +1.2%) is heading to the S&P 500, to replace Coca-Cola Enterprises (NYSE:CCE).
- That move is effective after Friday's close, when the bottling operation is expected to close on a merger with Coca-Cola Iberian Partners and Coca-Cola Erfrischungsgetränke, into Coca-Cola European Partners -- which will be ineligible for the index as it will be domiciled in Spain.
- At the same time, SmallCap 600 constituent Education Realty Trust (NYSE:EDR) will take Gallagher's place in the Midcap 400, and American Axle & Manufacturing Holdings (NYSE:AXL) will replace EDR in the SmallCap 600.
- After hours: AJG +0.5%; CCE -0.6%; EDR +1.2%; AXL +4.6%.
Thu, Feb. 11, 7:35 AM
Mon, Jan. 25, 12:00 PM
- Tobacco stocks and soft drinks names are mild outperformers on the day.
- Despite soft consumer spending trends, some retail analysts think 2016 sales for beer, cigarettes, and soft drinks will pick up in the U.S. as gas prices remain at low levels.
- Gainers today on a down market day include Dr. Pepper Snapple (DPS +1%), PepsiCo (PEP +0.7%), Coca-Cola (KO +0.7%), Coca-Cola Bottling Company (COKE +2.6%), Coca-Cola Enterprises (CCE +1.1%), Reynolds American (RAI +1.7%), Altrai (MO +1%), Philip Morris (PM +0.5%), and Anheuser-Busch InBev (BUD +0.7%).
- Speculation that anti-soda and cigarette advocate Michael Bloomberg might run for president doesn't appear to be creating even a ripple of worry.
- Previously: Michael Bloomberg is seriously considering running for president (Jan. 23 2016)
Dec. 16, 2015, 6:37 PM
- Coca-Cola Enterprises (NYSE:CCE) expects currency-neutral op. income and EPS to be "down slightly" in 2016. The Coke bottler adds forex (based on recent rates) is set to negatively impact 2016 EPS by "just over" 5%.
- Comparable and currency-neutral net sales are expected to be up slightly. Free cash flow is expected to drop to $500M-$550M from 2015's $600M-$650M, with costs related to the creation of Coca-Cola European Partners (CCEP) having a $75M-$100M impact. Capex is expected to total $325M vs. "less than" $325M in 2015. No buybacks are planned due to the CCEP transaction.
- CCE also now expects 2015 net sales to be "slightly negative" on both a comparable and currency-neutral basis. It still expects 2015 EPS to grow at the high end of a 6%-8% guidance range on a comparable and currency-neutral basis. Forex (i.e. a weak euro) is expected to have an 18% impact on 2015 EPS.
- CEO John F. Brock: "While we anticipated managing through a difficult operating environment in 2015, the consumer sector and the category have been softer than originally expected. Further, we expect these conditions to continue to impact CCE's results into 2016."
- Separately, CCEP has filed an initial SEC registration statement regarding the CCEP transaction. The deal is still expected to close by the end of Q2 2016. (Form F-4)
- Shares have dropped to $49.00 after hours.
Jul. 31, 2015, 9:19 AM
Jul. 30, 2015, 5:40 PM
Jul. 30, 2015, 5:19 PM
- Coca-Cola Enterprises (NYSE:CCE) +8.3% AH following a WSJ report that it is advanced talks about a merger with two European bottlers of Coca-Cola (NYSE:KO) products, a move that would further a push by the U.S. company to consolidate its bottlers around the world and cut costs.
- Terms of the potential deal are not known, but it is likely to be valued well into the billions of dollars.
Mar. 24, 2015, 8:42 AM| Mar. 24, 2015, 8:42 AM
Feb. 6, 2014, 8:10 AM
- KeyBanc raises its price target on Green Mountain Coffee Roasters (GMCR) to $150. The investment firm is being listened to after calling out just two months ago the potential for a Coca-Cola partnership with GMCR. Shares of GMCR are up 43.7% premarket to $115.50 - a level last seen in 2011.
- The deal is a positive for Coca-Cola (KO) as it refreshes its ability to enter a new category with growth potential, says Stephanie Link. If there's a concern, it's with Coca-Cola bottlers (CCE, COKE, KOF) who now have a risk to profitability.
- Shares of SodaStream (SODA) have recovered nicely from their initial plunge following the KO-GMCR news and are now off only 2.9% premarket. There's plenty of speculation that PepsiCo (PEP) will be tempted to match Coca-Cola's move into home beverage systems with a SodaStream deal.
- No panic with Starbucks (SBUX), +0.4% premarket, as analysts see the company's comfortable relationship with GMCR unaffected.
Sep. 3, 2013, 2:52 PM
- Coca-Cola Enterprises (CCE +2.3%) gets a lift from Goldman's Judy Hong who upgrades the shares to Conviction Buy from Neutral.
- The risk/ reward looks good, Hong thinks, as the fundamentals are improving and the valuation — at 14x forward earnings — is very reasonable.
- FY14 and FY15 EPS estimates raised to $2.91 (from $2.87) and $3.47 (from $3.46) respectively.
- Price target hiked to $47 from $43.
Jun. 11, 2013, 10:31 AM
Shares of Coca-Cola Enterprises (CCE -2.6%) fall after the company warns it's facing "challenging" operating conditions in Europe. In particular, a competitive market in Great Britain and sharp excise taxes in France are cited as factors.| Jun. 11, 2013, 10:31 AM
Apr. 30, 2012, 1:45 PM
Coca-Cola European Partners Plc is a consumer packaged goods company. It produces, distributes and markets nonalcoholic ready-to-drink beverages. The company serves across Western Europe, including Andorra, Belgium, France, Germany, Great Britain, Luxembourg, Monaco, the Netherlands, Norway,... More
Sector: Consumer Goods
Industry: Beverages - Soft Drinks
Country: United States
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