Charting Coca-Cola's Latest Earnings Release

Seth Jayson, The Motley Fool
Updated

Coca-Cola (NYS: KO) reported earnings on July 16. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended June 28 (Q2), Coca-Cola missed estimates on revenues and met expectations on earnings per share.

Compared to the prior-year quarter, revenue contracted slightly. Non-GAAP earnings per share grew. GAAP earnings per share shrank.


Gross margins grew, operating margins dropped, net margins shrank.

Revenue details
 Coca-Cola notched revenue of $12.75 billion. The 15 analysts polled by S&P Capital IQ hoped for a top line of $13.02 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.

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 $0.63. The 19 earnings estimates compiled by S&P Capital IQ anticipated $0.63 per share. Non-GAAP EPS of $0.63 for Q2 were 3.3% higher than the prior-year quarter's $0.61 per share. GAAP EPS of $0.59 for Q2 were 3.3% lower than the prior-year quarter's $0.61 per share.

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 60.9%, 80 basis points better than the prior-year quarter. Operating margin was 25.4%, 30 basis points worse than the prior-year quarter. Net margin was 21.0%, 30 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
 Next quarter's average estimate for revenue is $12.52 billion. On the bottom line, the average EPS estimate is $0.55.

Next year's average estimate for revenue is $48.34 billion. The average EPS estimate is $2.12.

Investor sentiment
 The stock has a four-star rating (out of five) at Motley Fool CAPS, with 6,437 members out of 6,761 rating the stock outperform, and 324 members rating it underperform. Among 1,820 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,764 give Coca-Cola a green thumbs-up, and 56 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 $45.38.

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The article Charting Coca-Cola's Latest Earnings Release 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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