The Coca-Cola Company
) recently announced the pricing of senior notes worth $500
million due 2015, $1.25 billion notes due 2018 and $750 million
notes due 2023 in an underwritten registered public offering. The
bonds for $1.25 billion and $750 million were priced with a
coupon of 1.15% and 2.50%, respectively and sold at par.
Coca-Cola intends to use a portion of the net proceeds to
repurchase its outstanding 5.00% notes due 2013, 7.375% notes due
2014 and 4.25% notes due 2015. The rest of the net proceeds will
be used for general corporate expenses.
Besides repurchasing notes, the company has been returning value
to its shareholders by repurchasing shares. In addition, the
company boasts a solid cash position by regularly paying
dividends. In fact the board of directors of The Coca-Cola
Company recently announced a 10% increase in the annual dividend.
On the other hand, rival
) also announced a 5.6% dividend increase recently at the
fourth quarter conference call on Feb 14, 2013.
Coca-Cola's fourth quarter adjusted earnings per share marginally
beat the Zacks Consensus Estimate by a penny. Moreover, earnings
rose 15% from the prior-year quarter as tepid revenue growth was
offset by solid operating margins, which gained from two extra
selling days and lower-than-expected currency headwinds.
Net revenue increased 4% year over year in fourth quarter 2012,
as benefits from volume growth and concentrate (syrups, powders
etc used in finished beverages) sales were largely offset by an
almost flat price/mix. Constant currency revenues increased 5% in
the quarter as currency hurt revenues by 1%. The top-line results
marginally missed the Zacks Consensus Estimate.
The Coca-Cola Company currently carries a Zacks Rank #3 (Hold).
Overall, we are encouraged by Coca-Cola's global reach, strong
brand power, expanding presence outside the U.S. and its solid
cash position. However, muted volume trends of carbonated
beverages, soft economic conditions and a tough currency
environment concern us.
Some of Coca-Cola's bottling companies are currently doing well
and have a bright outlook. These include
Coca-Cola Hellenic Bottling Company S.A
Coca-Cola Enterprises Inc.
), both carrying a Zacks Rank #2 (Buy).
COCA-COLA ENTRP (CCE): Free Stock Analysis
COCA COLA HELNC (CCH): Free Stock Analysis
COCA COLA CO (KO): Free Stock Analysis Report
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