Currency exchange rates once again cost the company 2% on comparable net revenues and 4% on operating income for the quarter. On a constant currency basis, second-quarter operating income rose 5%. The currency impact was identical to the company’s reported impacts in the first quarter.
The company did not include guidance in its press release this morning, but the consensus estimates for the third quarter call for EPS of $0.55 on revenues of $12.43 billion. For the full year, EPS is estimated at $2.13 on revenues of $48.17 billion.
The company’s CEO said:
Our second quarter volume results came in below our expectations, reflecting an ongoing challenging global macroeconomic environment and unusually poor weather conditions in the quarter. … Despite the headwinds in the quarter, we are committed to improving upon our results, with current dynamics leading us to believe that our performance will be better in the second half of the year.
Worldwide the company’s volume grew just 1% and is up 3% for the first six months of 2013. As in the first quarter, though, that growth did not translate into profits or revenues, both of which were down.
For the full year, Coca-Cola expects currency translation to have an overall impact of negative 4% on the company’s operating income. That is double the negative impact the company expected at the end of the first quarter.
Coca-Cola’s shares are down about 3.3% in premarket trading at $39.65 in a 52-week range of $35.58 to $43.43. Thomson Reuters had a consensus analyst price target of around $46.20 before today’s report.
Is Your Money Earning the Best Possible Rate? (Sponsor)
Let’s face it: If your money is just sitting in a checking account, you’re losing value every single day. With most checking accounts offering little to no interest, the cash you worked so hard to save is gradually being eroded by inflation.
However, by moving that money into a high-yield savings account, you can put your cash to work, growing steadily with little to no effort on your part. In just a few clicks, you can set up a high-yield savings account and start earning interest immediately.
There are plenty of reputable banks and online platforms that offer competitive rates, and many of them come with zero fees and no minimum balance requirements. Click here to see if you’re earning the best possible rate on your money!
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
