Soft Drink Stocks' Q1 Earnings Due on May 4: MNST, CCE, COT

The first-quarter earnings season has so far seen 40.6% of the consumer staples companies in the S&P 500 cohort coming up with their financial results. According to the latest Earnings Preview, 76.9% of the companies surpassed earnings estimates and 23.1% beat revenue expectations.

Total earnings at these consumer staples companies increased 1.5%, while revenues declined 3.3%. The sector is expected to report 4.3% earnings growth and 4% revenue growth in the first quarter of 2017.

The Beverages-Soft Drinks industry within the consumer staples sector has been coming up with sluggish results due to carbonated soft drinks or CSD category headwinds. Cross-category competition and growing health and wellness consciousness are hurting demand for CSDs. Among CSDs, the cola segment particularly has come under fire as consumers are opting for alternative beverage offerings. Diet drinks are also under pressure due to increasing consumer concern regarding the use of artificial sweeteners. Also, possible new taxes levied on sugar-sweetened beverages and growing regulatory pressures are affecting CSD sales.

Nonetheless, the companies are leaving no stone unturned to combat the tepid sales growth. They are pursuing investments on product innovations as well as newer revenue platforms while taking care of health benefits (like reduced calorie beverages, non-carbonated beverages and healthier snacks) to boost long-term sales and profits.

Some of the key players in the beverage industry – The Coca-Cola Company KO and PepsiCo, Inc. PEP – have already released their quarterly numbers. Coca-Cola failed to meet earnings expectations in the first quarter of 2017. Earnings also decreased year over year due to higher costs related to refranchising efforts in Coca-Cola's North America bottling operations.

PepsiCo reported better-than-expected results in first-quarter 2017 (ending Mar 25), with both earnings and revenues beating the Zacks Consensus Estimate.

Let’s take a look at the following soft drink stocks within the consumer staples sector, which are scheduled to release first-quarter 2017 results on May 4.

Monster Beverage Corporation MNST is expected to release financial numbers after the closing bell.

In the last reported quarter, the company delivered a positive earnings surprise of 16.67%. The company surpassed the Zacks Consensus Estimate in only two of the trailing four quarters, with an average beat of 2.04%.

Our proven model does not conclusively show that Monster Beverage is likely to beat earnings this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. You may uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Monster Beverage has an Earnings ESP of -3.13%. This is because the Most Accurate estimate of 31 cents stands below the Zacks Consensus Estimate of 32 cents.  However, the company’s Zacks Rank #3 increases the predictive power of ESP, but we also need to have a positive ESP to be confident of an earnings surprise.

Notably, for the first quarter, the Zacks Consensus Estimate for earnings is pegged at 32 cents, reflecting a 20.9% year-over-year increase. Meanwhile, the Zacks Consensus Estimate for revenues is pegged at $741.4 million, implying a 9% increase (read more: Monster Q1 Earnings: Is Disappointment in the Cards?).

Monster Beverage Corporation Price and EPS Surprise

Monster Beverage Corporation Price and EPS Surprise | Monster Beverage Corporation Quote

Coca-Cola European Partners Plc CCE, also known as CCEP, is a consumer packaged goods company, engaged in producing, distributing and marketing nonalcoholic ready-to-drink beverages. It is slated to report its quarterly numbers before the opening bell.

Last quarter, the company’s earnings met the analysts’ expectations. The company surpassed earnings estimates in two of the past four quarters, with an average negative surprise of 2.11%.

Currently, the company has an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate stand at 31 cents per share.

CCEP’s Zacks Rank #3 increases the predictive power of ESP. However, we need to have a positive ESP to be confident of a positive earnings surprise. You can see the complete list of today’s Zacks #1 Rank stocks here.

For the first quarter, the Zacks Consensus Estimate for earnings is pegged at 31 cents, reflecting a 23.4% year-over-year decline, while the consensus for revenues is at $2.52 billion, implying a 66.2% year-over-year increase.

Coca-Cola European Partners PLC Price and EPS Surprise

Coca-Cola European Partners PLC Price and EPS Surprise | Coca-Cola European Partners PLC Quote

Cott Corporation COT, one of the largest non-alcoholic beverage companies, is scheduled to report its results before the opening bell.

Last quarter, the company posted a positive earnings surprise of 133.33%. The company surpassed earnings estimates in each of the trailing four quarters, with an average positive surprise of 91.35%.

Currently, the company has an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate is pegged at a loss of 9 cents per share. Cott’s Zacks Rank #1 increases the predictive power of ESP. However, we need to have a positive ESP to be confident of a positive earnings surprise.

For the first quarter, the Zacks Consensus Estimate is pegged at a loss of 9 cents per share, reflecting a 550% year-over-year decline, while the consensus for revenues is at $905.4 million, implying a 29.6% year-over-year increase.

Cott Corporation Price and EPS Surprise

Cott Corporation Price and EPS Surprise | Cott Corporation Quote

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Coca-Cola European Partners PLC (CCE): Free Stock Analysis Report
 
Coca-Cola Company (The) (KO): Free Stock Analysis Report
 
Pepsico, Inc. (PEP): Free Stock Analysis Report
 
Monster Beverage Corporation (MNST): Free Stock Analysis Report
 
Cott Corporation (COT): Free Stock Analysis Report
 
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