The Coca-Cola Co 3Q17 Earnings Beat Estimates

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The Coca-Cola Co (NYSE:KO) 3Q17 earnings were released before opening bell this morning, and the company posted non-GAAP earnings of 50 cents per share on $9.08 billion in sales. Analysts had been expecting earnings of 49 cents per share on $8.73 billion in revenue. In last year’s third quarter, the beverage maker reported earnings of 49 cents per share on $10.63 billion in sales.

Coca-Cola 3Q17 earnings

On a GAAP basis, Coca-Cola 3Q17 earnings per share rose to 33 cents from 24 cents per share in last year’s third quarter. Total unit case volume was flat with the year-ago quarter. Although macroeconomic challenges continue in some parts of Latin America, Coca-Cola saw improving trends in developing and emerging markets with “slightly positive” volume growth in unit cases. Developed markets remained a stumbling block, however, as weather and difficult year-over-year comparisons resulted in weakness there.

Price per mix ticked higher by 3% year over year, driving a 4% increase in organic sales. An 18-point headwind from the refranchising of the company’s bottling operations was a drag on net revenues, pulling them down 15%. However, the beverage maker’s operating margin improved by 200 basis points.

The company reported outperformance in zero-sugar sparkling soft drinks led by new products such as Coca-Cola Zero Sugar in the U.S. In North America, price per mix grew 2%, while unit case volume was even, including low single-digit growth in coffee and tea while water, enhanced water, and sports drinks saw a low single-digit decline. Price per mix in Latin America jumped 10% on the back of strong growth in Mexico. In Asia, price per mix grew 1% despite a negative geographic mix as India and China outpaced Japan.

Coca-Cola provides guidance

For the full year, Coca-Cola maintains its expectation of about a 3% increase in organic revenues. The beverage maker expects its adjusted earnings per share to be even to down 2% from last year when it reported $1.91 per share. The FactSet consensus stands at $1.90 per share currently, which implies a decline of 0.5% year over year.

Following the Coca-Cola 3Q17 earnings release, the company’s stock was little changed in premarket trading as it ticked lower by 0.43% to $45.98.

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