Coca-Cola (KO) Averts Challenges in Europe; Posts Strong Q2 Profit, Volumes
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EPS Growth %: +2.9%
Financial Fact:
AVERAGE SHARES OUTSTANDING ASSUMING DILUTION (in shares): 4.36B
Today's EPS Names:
FRSB, DGICA, UXIN, More
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Coca-Cola (NYSE: KO) is opened higher Tuesday following a top- and bottom-line second-quarter beat, issued earlier.
Revenue for the beverage giant rose 2.7 percent to $13.09 billion, versus views calling for $12.99 billion.
Net income fell slightly to $2.79 billion, or $1.21 per share, or $1.22 following adjustments. The Street was looking for EPS of $1.19.
Notably, the Estimize crowd pegged sales at $13.11 billion and EPS of $1.20.
European case volume fell 4 percent while Eurasia & Africa saw a 12 percent pop. North American case volume rose just 1 percent in the quarter.
Total company unit volumes rose 4 percent.
On Europe, Coca-Cola said the drop, from 5 percent growth last year, was a reflection of "the challenges of both very unseasonable weather as well as ongoing macroeconomic uncertainty across the region."
Also of note, the company said it sees "unfavorable currency impact on full-year 2012 operating income to be at the high end of a mid single-digit range, and the unfavorable currency impact on operating income in the third quarter is anticipated to be 8% to 9%."
Cash and equivalents fell $3.47 billion through the quarter.
Analysts at Goldman Sachs noted that better volume and tax rate drove the beat. Volume growth was 4% better due to Euroasia and Africa.
"Coca-Cola is continuing to consolidate CSD share, investing in packaging and product innovation and supporting higher ad and promo spending with solid relative fundamentals," analysts at Deutsche Bank said. They said lack of other compelling growth names, clear margin upside drivers and exposure to wealthier developing market consumers further support their bullish view.
With the beat, Coca-Cola shares are up 1.8 percent in early trading.
Revenue for the beverage giant rose 2.7 percent to $13.09 billion, versus views calling for $12.99 billion.
Net income fell slightly to $2.79 billion, or $1.21 per share, or $1.22 following adjustments. The Street was looking for EPS of $1.19.
Notably, the Estimize crowd pegged sales at $13.11 billion and EPS of $1.20.
European case volume fell 4 percent while Eurasia & Africa saw a 12 percent pop. North American case volume rose just 1 percent in the quarter.
Total company unit volumes rose 4 percent.
On Europe, Coca-Cola said the drop, from 5 percent growth last year, was a reflection of "the challenges of both very unseasonable weather as well as ongoing macroeconomic uncertainty across the region."
Also of note, the company said it sees "unfavorable currency impact on full-year 2012 operating income to be at the high end of a mid single-digit range, and the unfavorable currency impact on operating income in the third quarter is anticipated to be 8% to 9%."
Cash and equivalents fell $3.47 billion through the quarter.
Analysts at Goldman Sachs noted that better volume and tax rate drove the beat. Volume growth was 4% better due to Euroasia and Africa.
"Coca-Cola is continuing to consolidate CSD share, investing in packaging and product innovation and supporting higher ad and promo spending with solid relative fundamentals," analysts at Deutsche Bank said. They said lack of other compelling growth names, clear margin upside drivers and exposure to wealthier developing market consumers further support their bullish view.
With the beat, Coca-Cola shares are up 1.8 percent in early trading.
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