The Gory Details on Cott's Double Miss

Cott (NYS: COT) reported earnings on Nov. 1. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Sep. 29 (Q3), 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 shrank.


Gross margins grew, operating margins expanded, net margins dropped.

Revenue details
Cott booked revenue of $583.8 million. The five analysts polled by S&P Capital IQ predicted sales of $616.5 million on the same basis. GAAP reported sales were 4.5% lower than the prior-year quarter's $611.3 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 $0.16. The nine earnings estimates compiled by S&P Capital IQ forecast $0.19 per share. GAAP EPS of $0.15 for Q3 were 12% lower than the prior-year quarter's $0.17 per share.

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 12.5%, 140 basis points better than the prior-year quarter. Operating margin was 5.0%, 20 basis points better than the prior-year quarter. Net margin was 2.5%, 20 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $562.1 million. On the bottom line, the average EPS estimate is $0.10.

Next year's average estimate for revenue is $2.33 billion. The average EPS estimate is $0.62.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 163 members out of 265 rating the stock outperform, and 102 members rating it underperform. Among 77 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 50 give Cott a green thumbs-up, and 27 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 $10.50.

The article The Gory Details on Cott's Double Miss originally appeared on Fool.com.

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 positions in the stocks mentioned above. 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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