Coca-Cola FEMSA Increases Sales but Misses Estimates on Earnings

Seth Jayson, The Motley Fool
Updated

Coca-Cola FEMSA (NYS: KOF) reported earnings on April 26. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended March 31 (Q1), Coca-Cola FEMSA met expectations on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue improved and GAAP earnings per share expanded slightly.


Margins dropped across the board.

Revenue details
 Coca-Cola FEMSA logged revenue of $2.54 billion. The three analysts polled by S&P Capital IQ wanted to see net sales of $2.53 billion on the same basis. GAAP reported sales were 20% higher than the prior-year quarter's $2.18 billion.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
 EPS came in at $1.04. The two earnings estimates compiled by S&P Capital IQ predicted $1.11 per share. GAAP EPS of $1.04 for Q1 were 2.0% higher than the prior-year quarter's $1.02 per share.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
 For the quarter, gross margin was 45.3%, 40 basis points worse than the prior-year quarter. Operating margin was 12.7%, 230 basis points worse than the prior-year quarter. Net margin was 7.9%, 70 basis points worse than the prior-year quarter.

Looking ahead

Next year's average estimate for revenue is $11.49 billion. The average EPS estimate is $5.34.

Investor sentiment
 The stock has a five-star rating (out of five) at Motley Fool CAPS, with 385 members out of 394 rating the stock outperform, and nine members rating it underperform. Among 105 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 103 give Coca-Cola FEMSA a green thumbs-up, and two give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Coca-Cola FEMSA is hold, with an average price target of $104.69.

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At the time thisarticle 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. 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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