Coca-Cola Earnings Cheat Sheet: Revenue Up, Profit Up
S&P 500 (NYSE:SPY) component The Coca-Cola Company (NYSE:KO) reported higher profit for the second quarter as revenue showed growth. The Coca-Cola Company is a leading manufacturer of nonalcoholic beverage concentrates and syrups. Biggest Secret in Business History Revealed: Coca-Cola Home Brew?>>
The Coca-Cola Company Earnings Cheat Sheet for the Second Quarter
Results: Net income for The Coca-Cola Company rose to $2.8 billion ($1.20 per share) vs. $2.37 billion ($1.02 per share) in the same quarter a year earlier. This marks a rise of 18.1% from the year earlier quarter.
Revenue: Rose 46.8% to $12.74 billion from the year earlier quarter.
Actual vs. Wall St. Expectations: KO beat the mean analyst estimate of $1.16 per share. It beat the average revenue estimate of $12.4 billion.
Quoting Management: Muhtar Kent, Chairman and CEO of The Coca-Cola Company, said, “We are pleased with our second quarter performance results. We completed the second quarter of 2011, and the sixth quarter of our 2020 Vision, by delivering results ahead of our long-term growth targets. Importantly, we are delivering these strong results at a time when global macroeconomic conditions are at best mixed. This serves to underscore how, together with our global bottling partners, we are decisively investing in the future and executing our 2020 Vision from a position of real strength.
The company has now seen net income rise in three straight quarters. In the first quarter, net income rose 17.7% and in the fourth quarter of the last fiscal year, the figure rose more than threefold.
Gross margin shrank 5.1 percentage points to 60.8%. The contraction appeared to be driven by increased costs, which rose 68.8% from the year earlier quarter while revenue rose 46.8%.
Revenue has risen the past four quarters. Revenue increased 39.8% to $10.52 billion in the first quarter. The figure rose 39.7% in the fourth quarter of the last fiscal year from the year earlier and climbed 4.7% in the third quarter of the last fiscal year from the year-ago quarter.
The company topped expectations last quarter after falling short of forecasts in the first quarter with net income of 86 cents versus a mean estimate of net income of 87 cents per share.
Competitors to Watch: PepsiCo, Inc. (NYSE:PEP), Dr Pepper Snapple Group Inc. (NYSE:DPS), Hansen Natural Corporation (NASDAQ:HANS), Coca-Cola FEMSA, S.A.B. de C.V. (NYSE:KOF), Coca-Cola Enterprises Inc. (NYSE:CCE), Heckmann Corporation (NYSE:HEK), National Beverage Corp. (NASDAQ:FIZZ), Jones Soda Co. (NASDAQ:JSDA), Celsius Holdings, Inc. (NASDAQ:CELH), and Cott Corporation (NYSE:COT).
(Source: Xignite Financials)