Coca-Cola Co. (NYSE: KO): Q2 Earnings Preview 2011

Coca-Cola Company (NYSE: KO) is scheduled to release its second-quarter earnings before the opening bell on Tuesday, July 19, 2011. Analysts, on average, expect the company to report earnings of $1.16 per share on revenue of $12.40 billion. In the year ago quarter, the company reported earnings of $1.06 per share on revenue of $52 billion.

The company manufactures, distributes and markets non-alcoholic beverage concentrates and syrups. It also manufactures, or authorizes bottling partners to manufacture, fountain syrups, which it sells to fountain retailers such as restaurants and convenience stores, which use the fountain syrups to produce finished beverages for immediate consumption, or to fountain wholesalers or bottlers, which in turn sell and distribute the fountain syrups to fountain retailers. In addition, it manufactures certain finished beverages, such as juices and juice drinks and water products, which it sells to retailers directly or through wholesalers or other distributors, including bottling partners.

The company has now seen net income rise in three straight quarters. Revenue has risen the past four quarters.

In the preceding first quarter, the Atlanta, Georgia-based company's net income was $1.90 billion or $0.82 per share from $1.61 billion or $0.69 per share, in the year-earlier quarter. On an adjusted basis, the company earned 86 cents per share in the fourth quarter. Revenue surged 40 percent to $10.52 billion from $7.53 billion in the year-ago quarter. Analysts, on average, expected the company to report earnings of $0.72 per share on revenue of $9.75 billion. 

At its last earnings call in April, the company noted that the integration efforts of Coca-Cola Refreshments are on schedule, with expected 2011 net cost synergies of $140 to $150 million.Also, company-wide productivity initiatives are on plan and on track to achieve targeted $500 million in annualized savings by year-end 2011.

Industrywide sales of carbonated soft drinks had been falling in the United States even before the recession slammed the brakes on consumer spending. Some consumers, taking heed of growing awareness of nutritional health, opted for drinks such as bottled water, juice and tea.

However, Coca-Cola is expanding agressively in international market, especially emerging markets, to improve revenue growth. The soft drinks maker is planning to more than double its number of bottling plants in China over the coming decade as part of the group's aim to triple the size of its sales to the country's rapidly emerging middle class. Coke derives more than three-quarters of its revenue from international markets, and is therefore able to offset falling sales in the United States with strong growth in emerging markets like India, China and Brazil. Coca-Cola executives say they expect 60 per cent of the new growth to come from China, India and other emerging markets, with only 15 per cent from developed markets.

Last year, Coca-Cola Co unveiled goals that call for the revenue generated by the company and its bottlers to double to roughly $200 billion by 2020, with profit margins increasing. Coke also said it hopes to more than double the number of soft drink servings it sells to over 3 billion per day by the end of 2020.

Recently, the company said that it plans to double its system revenue from 2010 to 2020 thus accomplishing in ten years what has taken the first 125. 

Full Disclosure: None.

Coca-Cola Co. (NYSE: KO): Q1 Earnings Preview 2011

Coca-Cola Company (NYSE: KO) is scheduled to release its first-quarter earnings before the opening bell on Tuesday, April 26, 2011. Analysts, on average, expect the company to report earnings of 87 cents per share on revenue of $10.54 billion. In the year ago quarter, the company reported earnings of 80 cents per share on revenue of $7.52 billion.

The company manufactures, distributes and markets non-alcoholic beverage concentrates and syrups. It also manufactures, or authorizes bottling partners to manufacture, fountain syrups, which it sells to fountain retailers such as restaurants and convenience stores, which use the fountain syrups to produce finished beverages for immediate consumption, or to fountain wholesalers or bottlers, which in turn sell and distribute the fountain syrups to fountain retailers. In addition, it manufactures certain finished beverages, such as juices and juice drinks and water products, which it sells to retailers directly or through wholesalers or other distributors, including bottling partners.

In the preceding fourth quarter, the Atlanta, Georgia-based company's net income was $5.77 billion, or $2.46 per share, compared to $1.54 billion, or $0.66 per share, in the year-earlier quarter. On an adjusted basis, the company earned $0.72 per share in the fourth quarter. Revenue jumped 40% to $10.49 billion from $7.51 billion in the previous year. Analysts, on average, expected the company to report earnings of $0.72 per share on revenue of $9.75 billion. 

The company expects currencies to have an even to slightly positive impact on operating income for the full year and in the first quarter of 2011. On productivity front, the company is on track to deliver $500 million in annual savings from its initiatives by the end 2011. Further, the company expects to capture between $140 million and $150 million of cost synergies related to our CCE transaction this year.

Industrywide sales of carbonated soft drinks had been falling in the United States even before the recession slammed the brakes on consumer spending. Some consumers, taking heed of growing awareness of nutritional health, opted for drinks such as bottled water, juice and tea.

However, Coca-Cola is expanding agressively in international market, especially emerging markets, to improve revenue growth. The soft drinks maker is planning to more than double its number of bottling plants in China over the coming decade as part of the group's aim to triple the size of its sales to the country's rapidly emerging middle class. Coke derives more than three-quarters of its revenue from international markets, and is therefore able to offset falling sales in the United States with strong growth in emerging markets like India, China and Brazil. Coca-Cola executives say they expect 60 per cent of the new growth to come from China, India and other emerging markets, with only 15 per cent from developed markets.

Last year, Coca-Cola Co unveiled goals that call for the revenue generated by the company and its bottlers to double to roughly $200 billion by 2020, with profit margins increasing. Coke also said it hopes to more than double the number of soft drink servings it sells to over 3 billion per day by the end of 2020.

The company's stock currently trades at a forward P/E (fye Dec 31, 2012) of 15.79 and PEG ratio (5 yr expected) of 1.83. In terms of stock performance, Coca-Cola shares have gained nearly 25 percent over the past year.

Full Disclosure: None.

The Coca-Cola Company (NYSE: KO): Q4 Earnings Preview 2010

The Coca-Cola Company (NYSE: KO) is scheduled to release its fourth-quarter earnings before the opening bell on Wednesday, February 9, 2011. Analysts, on average, expect the company to report earnings of 72 cents per share on revenue of $9.75 billion. In the year ago quarter, the company reported earnings of 66 cents per share on revenue of $7.51 billion.

The company manufactures, distributes and markets non-alcoholic beverage concentrates and syrups. It also manufactures, or authorizes bottling partners to manufacture, fountain syrups, which it sells to fountain retailers such as restaurants and convenience stores, which use the fountain syrups to produce finished beverages for immediate consumption, or to fountain wholesalers or bottlers, which in turn sell and distribute the fountain syrups to fountain retailers. In addition, it manufactures certain finished beverages, such as juices and juice drinks and water products, which it sells to retailers directly or through wholesalers or other distributors, including bottling partners.

In the preceding third quarter, the Atlanta, Georgia-based company's net income was $2.06 billion, or 88 cents a share, from $1.9 billion, or 81 cents, in the year-earlier quarter. On an adjusted basis, the company earned 92 cents per share in the latest quarter. Revenue grew 5% to $8.43 billion from $8.044 billion. Analysts, on average, expected the company to report earnings of 89 cents per share on revenue of $8.30 billion. 

The company expects currency to have a minimal to low single-digit negative impact on operating income in the fourth quarter. On productivity front, the company is on track to deliver $500 million in annual savings from its initiatives by the end 2011.

Industrywide sales of carbonated soft drinks had been falling in the United States even before the recession slammed the brakes on consumer spending. Some consumers, taking heed of growing awareness of nutritional health, opted for drinks such as bottled water, juice and tea.

However, Coca-Cola is expanding agressively in international market, especially emerging markets, to improve revenue growth. The soft drinks maker is planning to more than double its number of bottling plants in China over the coming decade as part of the group's aim to triple the size of its sales to the country's rapidly emerging middle class. Coke derives more than three-quarters of its revenue from international markets, and is therefore able to offset falling sales in the United States with strong growth in emerging markets like India, China and Brazil. Coca-Cola executives say they expect 60 per cent of the new growth to come from China, India and other emerging markets, with only 15 per cent from developed markets.

Last year, Coca-Cola Co unveiled goals that call for the revenue generated by the company and its bottlers to double to roughly $200 billion by 2020, with profit margins increasing. Coke also said it hopes to more than double the number of soft drink servings it sells to over 3 billion per day by the end of 2020.

Full Disclosure: None.

The Coca-Cola Company (NYSE: KO): Q1 Earnings Preview 2010

Coca-Cola is scheduled to release Q12010 earnings before the opening bell on Tuesday, April 20, 2010. Analysts, on average, expect the company to report earnings of $0.74 per share in the first quarter with estimates ranging from a low of $0.65 to a high of $0.79 per share. Revenues for the quarter are estimated to be $7.71 billion. In Q12009, the company reported earnings of $0.65 per share on revenue of $7.17 billion.

The Coca-Cola Company manufactures, distributes, and markets nonalcoholic beverage concentrates and syrups worldwide. It principally offers sparkling and still beverages. According to Beverage Digest, Coca-Cola remained the leading seller of carbonated soft drinks with a a 41.9 percent share of the total market.

In the preceding Q42009, the Atlanta, Georgia-based company reported that its profit jumped 55% to $1.54 billion or $0.66 per share from $995 million or $0.43 per share reported in the same period last year. Revenue rose to $7.5 billion from $7.1 billion. Analysts, on average, expected the company to report earnings of $0.66 per share on revenue of $7.1 billion. Unit case volume -- the measure of all the company's drinks sold worldwide - rose 5%, including a 6% increase overseas. According to the company, there was a significant increase in unit case volume in key emerging markets, with a growth of 29% in China and 20% in India. In developing markets, Brazil reported an increase of 8% and unit case volume grew 4% in Mexico.

Coke has said that its margin may get a boost from its plans to expand and build its infrastructure in countries like India and China. Its productivity initiatives are well on track to achieve the goal of $500 million in annualized savings by year-end 2011. Coca-Cola has realized more than half of the savings by the end of 2009.

The company said in January that overall currency translation will have a slightly positive impact on operating income for 2010.

In February, the Coca-Cola announced that it would buy the North American business of Coca-Cola Enterprises Inc. It also increased its stake in Innocent, Britain’s leading smoothie maker to 58 percent from 18 percent.

Coke will buy back about $1.5 billion of stock in 2010. It also increased its quarterly dividend by about 7% to $0.44 per common share from $0.41 per common share. This is equivalent to an annual dividend of $1.76 per share, up from $1.64 per share in 2009.

In terms of stock performance, Coca Cola shares have lost nearly 1 percent since the beginning of the year.

Full Disclosure: None.

The Coca-Cola Company (NYSE: KO): Q4 Earnings Preview 2009

The Coca-Cola Company (NYSE: KO), the world's largest beverage company, is scheduled to release its fiscal fourth-quarter 2009 financial results before the market open on Tuesday, February 9, 2009. Analysts, on average, expect the company to report earnings of 67 cents a share on revenue of $7.21 billion. In the year ago period, the company posted earnings of 64 per share on revenue of $7.13 billion.

The Coca-Cola Company manufactures, distributes, and markets nonalcoholic beverage concentrates and syrups worldwide. It principally offers sparkling and still beverages.

In the preceding third quarter, the Atlanta, Georgia-based company reported net income that was flat with the prior-year quarter at $1.90 billion or $0.81 per share. Excluding these charges and gains, non-GAAP net income for the quarter edged down to $1.92 billion or $0.82 per share from $1.93 billion or $0.83 per share in the year-ago quarter. Net operating revenues for the quarter declined 4% to $8.04 billion from $8.39 billion in the same quarter last year. Analysts, on average, expected the company to report earnings of $0.82 per share on revenue of $8.11 billion. Gross profit for the quarter decreased 5% to $5.11 billion from the year-earlier quarter, and selling, general and administrative expenses were $2.91 billion, 7% lower than the third quarter of 2008.

Worldwide unit case volumes increased 2% in the third quarter, driven by a 4% increase in international unit case volumes. Unit case volume growth increased strongly in key emerging markets with 37% growth in India, 15% growth in China and 3% growth in Brazil.

In November, the beverages company said its productivity initiatives remain well on track to achieve $500 million target in annualized savings by year-end 2011, and expects to deliver more than half of the savings by the end of 2009.

Coca-Cola is expanding agressively in international market, especially emerging markets, to improve revenue growth. The soft drinks maker is planning to more than double its number of bottling plants in China over the coming decade as part of the group's aim to triple the size of its sales to the country's rapidly emerging middle class. Coca-Cola executives say they expect 60 per cent of the new growth to come from China, India and other emerging markets, with only 15 per cent from developed markets. China, already Coca-Cola's third-largest national market by revenues, has an average per capita consumption of 28 Coca-Cola products per year -- on a par with poor African countries and well below the 199 per capita of Coca-Cola products drunk last year in Brazil.

The company's stock currently trades at a forward P/E (fye 31-Dec-10) of 15.57 and PEG Ratio (5 yr expected) of 1.93. In terms of stock performance, Coca-Cola shares have gained 25 percent over the past year.

Full Disclosure: None.