Coca-Cola Beats on EPS but GAAP Results Lag
Coca-Cola (NYS: KO) reported earnings on Feb. 7. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Coca-Cola met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share shrank significantly.
Gross margins grew, operating margins increased, and net margins dropped.
Coca-Cola reported revenue of $11.04 billion. The 10 analysts polled by S&P Capital IQ predicted revenue of $11.01 billion. Sales were 5.2% higher than the prior-year quarter's $10.49 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.79. The 14 earnings estimates compiled by S&P Capital IQ averaged $0.78 per share on the same basis. GAAP EPS of $0.72 for Q4 were 71% lower than the prior-year quarter's $2.46 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 60.1%, 90 basis points better than the prior-year quarter. Operating margin was 17.7%, 390 basis points better than the prior-year quarter. Net margin was 15.0%, 4,000 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $10.95 billion. On the bottom line, the average EPS estimate is $0.91.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 6,049 members out of 6,357 rating the stock outperform, and 308 members rating it underperform. Among 1,758 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,709 give Coca-Cola a green thumbs-up, and 49 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average price target is $74.10.
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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of Coca-Cola. Motley Fool newsletter services have recommended buying shares of Coca-Cola. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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