Coca-Cola Reports 3rd Quarter Results
On Tuesday everyone’s favorite beverage company, Coca-Cola (NYSE:KO) reported its third quarter results. Despite a tough global economic environment the company was able to generate modest earnings per share growth. Coca-Cola stated its profit rose in the third-quarter as the world’s biggest beverage maker managed to sell more of its drinks. The manufacturer of Sprite, Powerade, and Vitaminwater announced its global sales volume improved slightly. These results were helped in large part to strong emerging market results in markets such as China, India and Russia. Revenue declined because of structural changes and unfavorable currency exchange rates.
To compare these results on a year over year basis, the company says it earned $2.45 billion, or 54 cents per share. A year ago, the company earned $2.31 billion, or 50 cents per share. An 8 percent year over year gain is favorable for a company that has struggles to achieve growth in recent years. Not including one-time items, earnings per share were 53 cents. Revenue fell 3 percent to $12.03, slightly short of the $12.05 billion analysts expected.
One of the key figures analysts will be watching is volume growth. Coca-Cola reported its volume growth at 2% year over year. The Americas grew 1% and Coca-Cola International grew 3%, both consistent with GDP growth rates we’ve seen around the world.
While these results were not spectacular by any means, investors must realize what they are owning these days. The days of high growth are over for the most part, instead expect steady, modest, year over year gains. Early in the session shares of the company traded higher by 8 cents per share after pulling back from highs around $38.37 per share. While these gains may be lackluster, on a down day in the market, anything green helps investors at the end of the day.
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