Unexpected Savings in the Workplace: Coca-Cola Earnings Top Estimates

Coca-Cola earnings top estimates as consumers drink more beverages away from home. In a report released on August 2nd, Coca-Cola reported that second quarter net income was up 10% to $1.8 billion, or 99 cents per share. This is an increase of 8%. The company also raised its full year outlook for earnings per share to a range of $2.55-$2.65 from the prior estimate between $2.35 and $2.45 because of strong margins in emerging markets and cost savings initiatives at the bottler level

The most recent report by Coca-Cola has shown that there has been improvement in both revenue and profits which means that they are doing better than expected, especially with their net income and EPS (Earnings per Share).

The revenue for the second quarter increased 1% to $11.14 billion which was about equal to last year’s second quarter. This is a decrease of 0.7%. The increase in net income can be attributed to lower expenses such as taxes, interest, and other items. Coca-Cola also raised its full year outlook for EPS to a range of $2.55-$2.65 from the prior estimate between $2.35 and $2.45 because of strong margins in emerging markets and cost savings initiatives at the bottler level.

The reasons why revenue was not as high as expected are due to foreign exchange translation, primarily in Russia, Ukraine, Venezuela, Argentina and Mexico. Also the company noted that China reported flat results because of a one-time tax adjustment. This is not an issue for them since many organizations have seen their revenue go down because of global turmoil between countries.

The price per share increased by 6%. Coca-Cola has been struggling with sales in the U.S., however, their guidance is for a 1% increase and emerging markets and continue to grow faster than developed countries. Coca-Cola’s long term strategy of investing in their brands has shown that they are able to improve sales every quarter with only a few setbacks from time to time.

Coca-Cola Company (The) just beat its EPS estimates by 6% in this quarter. Coca-Cola also raised its full year outlook for EPS to a range of $2.55-$2.65 from the prior estimate between $2.35 and $2.45 because of strong margins in emerging markets and cost savings initiatives at the bottler level.

The revenue for the second quarter increased 1% to $11.14 billion which was about equal to last year’s second quarter. This is a decrease of 0.7%. The increase in net income can be attributed to lower expenses such as taxes, interest, and other items. Coca-Cola also raised its full year outlook for EPS to a range of $2.55-$2.65 from the prior estimate between $2.35 and $2.45 because of strong margins in emerging markets and cost savings initiatives at the bottler level.