Cott Misses on Both Revenue and Earnings (COT)

Cott Misses on Both Revenue and Earnings

Cott (NYSE: COT ) reported earnings on Feb. 15. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 29 (Q4), Cott missed estimates on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue contracted and GAAP earnings per share grew.

Margins grew across the board.

Revenue details
Cott booked revenue of $517.2 million. The five analysts polled by S&P Capital IQ predicted net sales of $543.9 million on the same basis. GAAP reported sales were 5.8% lower than the prior-year quarter's $549.2 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.03. The nine earnings estimates compiled by S&P Capital IQ forecast $0.06 per share. GAAP EPS were $0.02 for Q4 compared to -$0.13 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 11.7%, 230 basis points better than the prior-year quarter. Operating margin was 3.3%, 130 basis points better than the prior-year quarter. Net margin was 0.4%, 260 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $534.7 million. On the bottom line, the average EPS estimate is $0.09.

Next year's average estimate for revenue is $2.33 billion. The average EPS estimate is $0.69.

Investor sentiment
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 162 members out of 268 rating the stock outperform, and 106 members rating it underperform. Among 76 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 52 give Cott a green thumbs-up, and 24 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Cott is outperform, with an average price target of $10.36.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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