Markets
KO

Coca-Cola (KO) Beats on Earnings & Sales in Q4

A generic image of two people across from each other
Credit: Shutterstock photo

The Coca-Cola Company KO has a formidable portfolio of globally recognized brands, both carbonated like Coke and Fanta as well as non-carbonated like Minute Maid and Powerade.

Coca-Cola commands a strong market position due to its global reach, strong brand power, expanding international presence, a solid global bottling network and an impressive cash position. 2015 was a "transition year" for Coca-Cola when it has implemented changes to create a new operating model. It undertook aggressive cost-cutting and several initiatives to drive faster growth in 2015.The company is also re-franchising the majority of its company-owned North American bottling territories to create a more efficient system.

Investors should note the recent earnings estimate revisions for KO have been mostly downwards. However, KO does have a superb history in earnings season. KO has delivered positive earnings surprise for four straight, making for an average positive earnings surprise of 5.85%.

Currently, KO has a Zacks Rank #3 (Hold), but that could definitely change following Coca-Cola's earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:

Earnings: KO beat on earnings. Our consensus earnings estimate called for EPS of 37 cents/share, and the company reported EPS of 38 cents instead. Investors should note that these figures take out stock option expenses.

Revenues: KO reported revenues of $10 billion. This beat our consensus estimate of $9.86 billion.

Key Stats to Note: The cola giant witnessed 3% volume growth, same as the previous quarter. Coca-Cola said it will complete all remaining re-franchising of North American bottling operations by the end of 2017, much earlier than 2020 as previously expected. The company also said it has signed non-binding letter of intent to refranchise company-owned bottling operations in China to its existing partners.

Stock Price: Shares declined in pre-market trading .

Check back later for our full write up on this KO earnings report later!

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

COCA COLA CO (KO): Free Stock Analysis Report

To read this article on Zacks.com click here.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

KO

Other Topics

Earnings Investing Stocks

Latest Markets Videos

    Zacks

    Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

    Learn More