As of this writing, shares of Coca-Cola were up 4.29% at $43 per share
Coca-Cola released its latest earnings report before opening bell this morning, posting comparable earnings of 44 cents per share and revenue of $10.87 billion for the fourth quarter. Analysts had been expecting earnings of 42 cents per share on $10.8 billion in revenue for the fourth quarter.
Key metrics from Coca-Cola’s earnings report
Reported earnings were 17 cents per share. The beverage maker said items of 27 cents per share were mostly related to exchange rates for Venezuelan currency. Other items include a write-down on concentrate sales receivables from a Venezuelan bottling partner, non-cash charges related to the refranchising of some of the company’s North American regions and costs connected to the company’s productivity program. The company also took a 10-point hit on its comparable earnings per share growth due to the strengthening of the U.S. dollar against foreign currencies.
Coca-Cola reported a 4% increase in comparable currency neutral net revenues for the fourth quarter. Positive price per mix and one extra selling day drove that increase.
Coca-Cola reported a 2% full year global volume growth and 1% growth in the fourth quarter. The beverage maker said it gained global value and volume share in non-alcoholic ready-to-drink beverages, sparkling and still beverages, juice and juice drinks, ready-to-drink tea and packaged water.
Coca-Cola provides guidance
The company said for the full year ahead, it expects to see a “slight positive” in growth of its net revenues and a one- to two-point headwind on growth in gross profits. Coca-Cola also expects a one-point headwind against its operating income growth and “a slight headwind” on its pre-tax profits.
The company expects a negative impact on reported results due to fluctuations in foreign currency exchange rates. Based on the current rates, the company’s hedging, and the “cycling” of its previous year rates, management expects a five-point headwind on net revenues and a headwind of seven to eight points on pre-tax profits.
Coca-Cola expects to buy back $2 billion to $3 billion worth of its shares and post growth in full year comparable earnings per share of mid-single digits.