Coca Cola (KO) Tops Q4 EPS by 1c
Coca Cola (NYSE: KO) reported Q4 EPS of $0.38, $0.01 better than the analyst estimate of $0.37. Revenue for the quarter came in at $10 billion versus the consensus estimate of $9.91 billion.
2015 OPERATING REVIEW
TOTAL COMPANY
| Percent Change | ||||||
| Fourth Quarter | Full Year | |||||
| Unit Case Volume | 3 | 2 | ||||
| Sparkling Beverages | 2 | 1 | ||||
| Still Beverages | 6 | 5 | ||||
| Concentrate Sales/Reported Volume | (3) | 1 | ||||
| Price/Mix | 2 | 2 | ||||
| Currency | (7) | (7) | ||||
| Acquisitions & Divestitures, Net | 0 | 0 | ||||
| Reported Net Revenues | (8) | (4) | ||||
| Organic Revenues * | (1) | 4 | ||||
| Reported Income Before Taxes | 43 | 3 | ||||
| Comparable CN Income Before Taxes (Structurally Adjusted) * | (2) | 6 | ||||
* Organic revenue and comparable currency neutral (CN) income before taxes (structurally adjusted) are non-GAAP financial measures. Refer to the Notes and Reconciliation of GAAP and Non-GAAP Financial Measures schedule. | ||||||
2016 OUTLOOK
- The Company expects organic revenue to be up 4% to 5% in 2016, in line with our long-term target. The net impact of acquisitions and divestitures is expected to be a 4 to 5 point headwind and based on the current spot rates, currency is expected to be a 4 point headwind, including the impact of hedged positions.
- The Company expects comparable currency neutral income before taxes (structurally adjusted) to grow 6% to 8% in 2016, in line with our long-term target, as strong operating profit growth is expected to be partially offset by increased interest expense. The net impact of structural items is expected to be a 3 to 4 point headwind and based on the current spot rates, currency is expected to be a 9 point headwind, including the impact of hedged positions.
- Given the above, the Company expects full-year comparable currency neutral EPS growth to be 4% to 6% including the impact of 3 to 4 points of structural headwind, primarily due to refranchising, on comparable currency neutral income before taxes. Based on the current spot rates, currency is expected to be a 9 point headwind, including the impact of hedged positions.
- In addition to the above, the Company expects the following:
- The underlying effective annual tax rate in 2016 is expected to be 22.5%.
- We are targeting full-year 2016 net share repurchases of $2.0 to $2.5 billion.
- For the first quarter of 2016, we estimate that based on the current spot rates, currency will be a 5 point headwind on net revenues and a 12 point headwind on income before taxes, including the impact of hedged positions.
For earnings history and earnings-related data on Coca Cola (KO) click here.