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Coca-Cola (KO) Beats on Earnings in Q2; Lowers Sales View
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The Coca-Cola Company (KO - Free Report) commands a strong market position due to its global reach, strong brand power, expanding international presence, a solid global bottling network and an impressive cash position.
2015 was a “transition year” for Coca-Cola because of the changes implemented to create a new operating model. The company made tangible progress on the plan. The company implemented aggressive cost-cutting measures and several initiatives to drive growth during the year. The resultant savings are being deployed to fund marketing programs and in innovations to re-accelerate top-line growth, margin expansion and returns on capital.
Coca-Cola is also refranchising the majority of its company-owned North American bottling territories to create a more efficient system. Over 65% of the U.S. territories have already been transferred or agreed to be refranchised so far.
The company is also focused on refranchising in markets like Europe and Africa which includes the creation of Coca-Cola European Partners through merger of bottlers in Western Europe in May and Coca-Cola Beverages Africa through merger of bottling operations in Southern and Eastern Africa in July.
Investors should note the recent earnings estimate revisions for KO have been mostly downwards. However, KO has a superb history in earnings season. KO has delivered positive earnings surprise for four straight, making for an average positive earnings surprise of 2.99%.
Currently, KO has a Zacks Rank #3 (Hold), but that could definitely change following Coca-Cola’s earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:
Earnings: KO beat on earnings. Our consensus earnings estimate called for EPS of 58 cents/share, and the company reported EPS of 60 cents instead. Investors should note that these figures take out stock option expenses.
Revenues: KO reported revenues of $11.54 billion. This missed our consensus estimate of $11.71 billion.
Key Stats to Note: The cola giant witnessed flat volumes in the second quarter, less than 2% in the previous quarter due to severe challenges in many emerging markets.
Though the company re-affirmed the previously issued full year 2016 profit outlook, it lowered its sales expectations.
Stock Price: Shares declined around 2% in pre-market trading.
Check back later for our full write up on this KO earnings report later!
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Coca-Cola (KO) Beats on Earnings in Q2; Lowers Sales View
The Coca-Cola Company (KO - Free Report) commands a strong market position due to its global reach, strong brand power, expanding international presence, a solid global bottling network and an impressive cash position.
2015 was a “transition year” for Coca-Cola because of the changes implemented to create a new operating model. The company made tangible progress on the plan. The company implemented aggressive cost-cutting measures and several initiatives to drive growth during the year. The resultant savings are being deployed to fund marketing programs and in innovations to re-accelerate top-line growth, margin expansion and returns on capital.
Coca-Cola is also refranchising the majority of its company-owned North American bottling territories to create a more efficient system. Over 65% of the U.S. territories have already been transferred or agreed to be refranchised so far.
The company is also focused on refranchising in markets like Europe and Africa which includes the creation of Coca-Cola European Partners through merger of bottlers in Western Europe in May and Coca-Cola Beverages Africa through merger of bottling operations in Southern and Eastern Africa in July.
Investors should note the recent earnings estimate revisions for KO have been mostly downwards. However, KO has a superb history in earnings season. KO has delivered positive earnings surprise for four straight, making for an average positive earnings surprise of 2.99%.
Currently, KO has a Zacks Rank #3 (Hold), but that could definitely change following Coca-Cola’s earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:
Earnings: KO beat on earnings. Our consensus earnings estimate called for EPS of 58 cents/share, and the company reported EPS of 60 cents instead. Investors should note that these figures take out stock option expenses.
Revenues: KO reported revenues of $11.54 billion. This missed our consensus estimate of $11.71 billion.
Key Stats to Note: The cola giant witnessed flat volumes in the second quarter, less than 2% in the previous quarter due to severe challenges in many emerging markets.
Though the company re-affirmed the previously issued full year 2016 profit outlook, it lowered its sales expectations.
Stock Price: Shares declined around 2% in pre-market trading.
Check back later for our full write up on this KO earnings report later!
Want the latest recommendations from Zacks Investment Research? Today, you can download7 Best Stocks for the Next 30 Days. Click to get this free report >>