J.P. Morgan Reduces Estimates On Cott Corp

According to J.P. Morgan, Cott Corp COT released Q111 comparable EPS of $0.09, vs. the $0.13 estimate, and $0.14 Bloomberg consensus. J.P. Morgan said that while topline was better than we modeled, the miss was driven by GM contraction (-273 bp, JPMe -140 bp). “This was due to the timing of price increases in the quarter and a tougher commodity cost environment. Like its branded competitors last week, COT increased its forecast for incremental RM costs. We continue to expect GM pressures from cost inflation in the next few quarters along with a competitive marketplace given the soft consumer environment.” Cott Corp closed yesterday at $8.76.