(CEDC) – Central European Distribution Corp – Estimates continue to revise their earnings estimates upward

July 16th, 2008

Central European Distribution Corporation (CEDC) shares just broke through a key level of resistance and set a new 52-week and all-time high. The company’s stock price has had a great year, advancing from less than $47 a share to this recent high-water mark above $77, an impressive return of more than 60%. Estimates continue to revise their earnings estimates upward.

Central European Distribution Corporation imports and distributes alcoholic beverages in Poland, Russia and Easter Europe. The company was founded in 1990, carries a market cap. of $3.16 billion and is based Bala Cynwyd, Pennsylvania.

Another Solid Quarter

CEDC reported very solid first-quarter results on Apr 30. Sales were up 37% from the same period last year to $313.6 million. On a U.S. GAAP basis, net income surged ahead, jumping to $18.5 million from a loss of $5.2 million in the same period last year. This produced earnings of 45 cents per share, ahead of analyst estimates of 28 cents per share.

This marks the third time in four quarters that CEDC has surprised and beaten analyst estimates, an impressive accomplishment in a volatile economic environment.

Growth Through Acquisition

On May 26, CEDC announced that it had officially completed its acquisition of the Russian alcohol distributor Whitehall Group. The acquisition is expected to produce an additional $200 million in annual top line revenue for CEDC, representing a 15%-20% increase in revenue from 2007.

William Carey, President and CEO commented, “The Whitehall Group is one of the premier spirit companies in Russia. The Company’s portfolio is well-positioned to take advantage of the strong economic trends in Russia.”

Estimates Are Up

The analyst community continues to be bullish on CEDC. In just the last 7 days the current-year estimate has advanced to $2.70 from $2.59.

The Chart

Shares of CEDC have been on a very smooth up trend for the last four months, advancing from the Mar 4 low just above $48 to current prices above $77. Only a few days ago, shares of CEDC surged past the a resistance level at $72 and set a new 52-week and all-time high.

Content Courtesy: Zacks Investment Research

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Read more on Central European Distribution at Wikinvest

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