Earnings in Focus: The Coca-Cola Company (NYSE:KO)

The Coca-Cola Company (NYSE:KO) reported earnings for the three months ended Mar2016 on April 20, 2016. The company earned $0.45 per share on revenue of $10.33B. Analysts had been modeling earning per share of $0.44 with $10.29B in revenue.

The Coca-Cola Company (NYSE:KO) reported first quarter 2016 operating results.

 Reports First Quarter 2016 Results.

• Reported net revenue declined 4% and organic revenue grew 2% in the quarter, impacted by one less day in our reporting calendar.


• Reported EPS was $0.34 and comparable EPS was $0.45.


• Global volume grew 2%.


• Global price/mix was a positive 1%, as solid underlying pricing was partially offset by segment mix.


•  Comparable currency neutral operating margin expanded.


• Gained global value share in nonalcoholic ready-to-drink beverages.


• Full-year comparable currency neutral earnings outlook remains unchanged

• All references to growth rate percentages and share compare the results of the period to those of the prior year comparable period.


• The Company reports its financial results in accordance with accounting principles generally accepted in the United States (GAAP).  However, management believes that certain nonGAAP financial measures provide users with additional meaningful financial information that should be considered when assessing the Company’s ongoing performance.  Management also uses these non-GAAP financial measures in making financial, operating and planning decisions and in evaluating the Company’s performance.  Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the Company’s reported results prepared in accordance with GAAP.  The Company’s non-GAAP financial information does not represent a comprehensive basis of accounting.


• “Comparable currency neutral income before taxes” is a non-GAAP financial measure that excludes or otherwise adjusts for items impacting comparability and the impact of changes in foreign currency exchange rates.  For details on these adjustments, refer to the Reconciliation of GAAP and Non-GAAP Financial Measures schedule.


• “Comparable currency neutral income before taxes (structurally adjusted)” is a non-GAAP financial measure that excludes or otherwise adjusts for items impacting comparability, the impact of changes in foreign currency exchange rates and the impact of structural items.  For details on these adjustments, refer to the Reconciliation of GAAP and Non-GAAP Financial Measures schedule.


• “Concentrate sales” represents the amount of concentrates, syrups, beverage bases and powders sold by, or used in finished beverages sold by, the Company to its bottling partners or other customers.

The Coca-Cola Company earnings per share showed an increasing trend of 4.6% for the current fiscal year. The company’s expected EPS growth rate for next fiscal year is 205%.Analysts project EPS growth over the next 5 years at 4.06%. It has EPS annual decline over the past 5 fiscal years of -8% when sales grew 4.8. It reported -4% sales drop, and -3.9% EPS decline in the last quarter.

The stock is trading at $44.6, up 24.96% from 52-week low of $36.56. The stock trades down -5.37% from its peak of $47.13 and 7.62% above the consensus price target of $48. Its volume clocked up at 18.93 million shares which is higher than the average volume of 13.97 million shares. Its market capitalization currently stands at $193.73B.