Companies and Brands
Coca-Cola Earnings Lackluster Despite Q3 Beat
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Coca-Cola Co. (NYSE: KO) reported its most recent quarterly results before the markets opened on Wednesday. Although revenues were hampered by the continued headwind of refranchising, investors took this earnings beat in stride, but still sent shares lower, adding a little more to the Dow’s loss.
The company said that it had $0.50 in earnings per share (EPS) and $9.08 in revenue. That compares with consensus estimates from Thomson Reuters of $0.49 in EPS and revenue of $8.72 billion. The same period of last year reportedly had EPS of $0.49 and $10.63 billion in revenue.
Total unit case volume was even. Despite continued macroeconomic challenges in certain Latin American markets, emerging and developing markets saw improving trends, achieving slightly positive unit case volume growth. This was offset by the performance in developed markets, which was negatively affected by weather and the cycling of strong results from the prior year.
In terms of its segments, Coke reported as follows:
Looking ahead to the full year, the company expects to see 3% growth in organic revenues, with EPS flat to up 2%. The consensus estimates call for $1.90 in EPS and $35.05 billion in revenue for the 2017 full year.
James Quincey, president and CEO, commented:
I am encouraged with our progress and results in the quarter. Our performance reflects the strength of an organization that is focused on delivering against its financial commitments while also making substantial structural and cultural changes.
Shares of Coke were last seen down about 0.4% at $46.00, with a consensus analyst price target of $47.76 and a 52-week range of $39.88 to $46.98.
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