Coca-Cola Beats Analyst Estimates on EPS

Seth Jayson, The Motley Fool
Updated

Coca-Cola (NYS: KO) reported earnings on Feb. 12. 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 slightly on earnings per share.

Compared to the prior-year quarter, revenue grew and GAAP earnings per share increased.


Gross margins contracted, operating margins dropped, net margins expanded.

Revenue details
 Coca-Cola logged revenue of $11.47 billion. The 10 analysts polled by S&P Capital IQ hoped for revenue of $11.54 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.

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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 $0.45. The 15 earnings estimates compiled by S&P Capital IQ anticipated $0.44 per share. GAAP EPS of $0.41 for Q4 were 14% higher than the prior-year quarter's $0.36 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 59.6%, 50 basis points worse than the prior-year quarter. Operating margin was 19.1%, 100 basis points worse than the prior-year quarter. Net margin was 16.3%, 130 basis points better than the prior-year quarter.

Looking ahead
 Next quarter's average estimate for revenue is $11.52 billion. On the bottom line, the average EPS estimate is $0.46.

Next year's average estimate for revenue is $50.55 billion. The average EPS estimate is $2.17.

Investor sentiment
 The stock has a five-star rating (out of five) at Motley Fool CAPS, with 6,358 members out of 6,671 rating the stock outperform, and 313 members rating it underperform. Among 1,792 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,740 give Coca-Cola a green thumbs-up, and 52 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Coca-Cola is outperform, with an average price target of $41.47.

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The article Coca-Cola Beats Analyst Estimates on EPS originally appeared on Fool.com.

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 recommends 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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