Coca-Cola (KO) Shares Rally On Q4 Earnings & Revenue Beat
Zacks Investment Research | Feb 15, 2018 10:10PM ET
The Coca-Cola Company (NYSE:KO) reported better-than-expected fourth-quarter 2017 results, ending the year on an impressive note. Despite reporting flat soda volumes, the cola giant gained from its growing beverage portfolio and re-structuring efforts. Cost-cutting initiatives led by the refranchising of its low-margin bottling operations helped it to come up with better numbers.
Coca-Cola’s shares have rallied 2.9% in the pre-trading session following the earnings release.
Earnings Beat
Fourth-quarter 2017 comparable earnings of the company were 39 cents per share, surpassing the Zacks Consensus Estimate of 38 cents.
Earnings also improved from the year-ago profit level of 37 cents, helped by ongoing productivity efforts.
Sales Beat
Revenues of $7.51 billion in the quarter surpassed the Zacks Consensus Estimate of $7.36 billion. However, net revenues declined 20% year over year due to the negative impact of structural items, marking the 11th consecutive quarterly decline. Acquisitions/divestitures and structural items had a 26% negative impact on revenues, partly offset by a 4% positive contribution of price/mix and concentrate sales growth of 1%. The structural changes primarily include the impact of bottler refranchising efforts.
Coca-Cola Company (The) Price, Consensus and EPS Surprise
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