Coca-Cola Enterprises Shares Up After Q1 Beat

MILWAUKEE (AP) — Shares of soft drink bottler Coca-Cola Enterprises Inc. rose on Wednesday after the largest Coca-Cola bottler's first-quarter performance handily beat Wall Street expectations.

Shares of the Atlanta-based company rose 78 cents, or 4.9 percent, to $16.68 in midday trading Wednesday.

UBS analyst Kaumil S. Gajrawala raised his price target for the stock to $17 from $11, while Deutsche Bank-North America analyst Marc Greenberg raised his target by $1 to $17.

On Tuesday the company said its first-quarter profit rose sharply as it benefited from improving results in North America and cost cutting. The company earned 13 cents a share, or when items are excluded, 20 cents a share, in the quarter. Analysts had predicted earnings per share of 5 cents, excluding one time items. Revenue rose 3 percent to $5.05 billion, also beating estimates.

Gajrawala said the results show that price increases the company implemented in the fall and its restructuring efforts "have begun to favorably impact the bottom line." Overall volume fell 0.9 percent, with North American volume dropping 3 percent, but he said that too beat expectations.