Post-Earnings Review - Coca-Cola

LONDON, November 10, 2014 /PRNewswire/ --

Investor-Edge.com has issued free post-earnings review on The Coca-Cola Co. (NYSE: KO). On October 21, 2014, the company reported its financial results for Q3 FY14 (period ended September 26, 2014). Click on http://www.investor-edge.com/FreeReports to read our free earnings review on Coca-Cola Co. (Coca-Cola). During Q3 FY14, the company witnessed global volume growth of 1% on a Y-o-Y basis and 2% on YTD basis, and its operating income grew 10% from the preceding year quarter. Our free coverage report can be accessed at:

http://www.investor-edge.com/register

Earnings Overview 

During Q3 FY14, Coca-Cola reported net operating revenues of $11,976 million, compared to $12,030 million in the same period last year. The company's net operating revenues during the reported quarter came below Bloomberg analysts' forecast of $12,119 million. The company's global sparkling beverage volume was even in the quarter and grew 1% on YTD basis on account of challenging macroeconomic environment, bad weather effects in certain regions and competitive pressure in certain markets. However, Coca-Cola saw volume and value share gains in core sparkling beverages around the world during Q3 FY14 partly as a result of successful execution of the Share a Coke marketing campaign in multiple markets worldwide. Global brand Coca-Cola volume was even during Q3 FY14, while the company's other key brands, Sprite and Fanta, both grew 1% on a Y-o-Y basis. The free research on KO can be downloaded as in PDF format at:

http://www.Investor-Edge.com/KOFreeReport

Intersegment revenues during Q3 FY14 were $187 million for Europe, $16 million for Latin America, $3 million for North America, $154 million for Asia Pacific and $19 million for Bottling Investments. The company's gross profit increased 1% to $7,346 million in Q3 FY14, from $7,237 million in Q3 FY13. Further, operating income increased to $2,711 million, from $2,472 million in Q3 FY13. On the other hand, the company's net income attributable to shareowners narrowed to $2,114 million, or $0.48 per diluted share, in Q3 FY14, from $2,447 million, or $0.54 per diluted share, in Q3 FY13. Analysts from Bloomberg had expected the company to report net income of $2,348 million, or $0.53 per diluted share, in Q3 FY14. Foreign currency unfavorably impacted EPS by 6 points due to additional currency headwinds related to re-measurement gains/losses recorded in net other loss of $312 million in Q3 FY14 as compared to other income of $658 million in Q3 FY13.  

The company generated cash from operating activities of $7,979 million on YTD basis, which enables it to pay a healthy dividend, reinvest in the business and return $1.9 billion to its shareholders through net share repurchases. The company's year-to-date net share repurchases totaled to $1.9 billion. Sign up and read the free analyst's notes on KO at:

http://www.Investor-Edge.com/KO-10112014

Muhtar Kent, Chairman and CEO of Coca-Cola, stated that the company had announced five strategic priorities, earlier this year, to restore momentum and reinvigorate long-term sustainable growth. He added that even though the company has begun seeing early signs of progress, Coca-Cola recognizes the need to increase the scope and pace of change as it continues to face a challenging macroeconomic environment. He informed that the company is taking actions to strengthen its long-term financial performance, including further aligning the organization and its incentive plans to drive revenue and profit growth, increasing the company's productivity target to $3 billion in annualized savings by 2019, streamlining and simplifying the organization, and proceeding with plans for refranchising the majority of company-owned North American bottling territories by the end of 2017. Mr. Kent concluded by saying that although the above said actions will take time to implement, the team is confident that it will position the company to continue delivering sustainable value to its shareowners as they work toward its 2020 Vision.

In its guidance for FY14, the company continues to expect operating leverage to be flat to slightly positive. Further, it expects long-term EPS growth to be below its target for FY14. Coca-Cola is also targeting FY14 net share repurchases of $2.5 billion. Visit Investor-Edge and access the latest research on KO at:

http://www.Investor-Edge.com/KOEarningsCoverage

Stock Performance 

On the day of the earnings release, October 21, 2014, Coca-Cola's stock ended the session at $40.68, losing 6.03% for the day. The stock has recovered its losses with a mostly positive momentum since then. On the last close, Friday, November 07, 2014, it finished at $42.32, 0.07% above its previous day's closing price, after vacillating between $42.14 and $42.46. A total of 11.80 million shares were traded, which was below its three months average volume of 16.76 million shares. Over the previous three trading sessions and from the beginning of 2014, the company's shares have gained 1.20% and 2.44%, respectively. However, the stock has fallen by 5.01% over the last one month. Shares in Coca-Cola closed above their 50-day and 200-day moving averages of $42.20 and $40.55, respectively. Furthermore, the stock traded at a PE ratio of 21.46 and has a Relative Strength Index (RSI) of 53.46.

Sneak Peek to Corporate Insider Trading 

In the last one month Coca-Cola has not reported any share transactions by insiders to the U.S. Securities and Exchange Commission (SEC). Complimentary in-depth research on KO is available at:

http://www.Investor-Edge.com/KOInsiderTrading

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