Coca-Cola beats by $0.02, reports revs in-line; guides FY17 EPS in-line (45.24)
- Reports Q2 (Jun) earnings of $0.59 per share, excluding non-recurring items, $0.02 better than the Capital IQ Consensus of $0.57; revenues fell 15.9% year/year to $9.7 bln vs the $9.62 bln Capital IQ Consensus. Price/mix growth of 3% was driven by positive operational pricing and mix, particularly in North America and Latin America. Geographic or segment mix did not have a significant impact on price/mix. Unit case volume was even and included the following performance by category cluster: Sparkling soft drinks: 0% Juice, dairy, and plant-based beverages: 3% Water, enhanced water, and sports drinks: 1% Tea and coffee: 2%
- Co issues in-line guidance for FY17, sees EPS flat to down 2% to $1.87-1.91 (from down 1-3%), excluding non-recurring items, vs. $1.88 Capital IQ Consensus; ~3% growth in organic revenues (non-GAAP) -- No Change; 7% to 8% growth in comparable currency neutral income before income taxes (structurally adjusted) (non-GAAP), driven by strong operating performance partially offset by the impact of an increasing interest rate environment -- No Change; Full Year 2017 Currency Impact: Comparable net revenues (non-GAAP): 1% to 2% headwind based on the current rates and including the impact of hedged positions -- No Change.
- Third Quarter 2017 Considerations: Comparable net revenues (non-GAAP): 19% to 20% headwind from acquisitions, divestitures, and structural items; 1% to 2% currency headwind based on the current rates and including the impact of hedged positions -- New Comparable income before income taxes (non-GAAP): 9% to 10% structural headwind; 2% to 3% currency headwind based on the current rates and including the impact of hedged positions
- New Full Year 2018 Considerations: Comparable net revenues (non-GAAP): 16% to 17% headwind from acquisitions, divestitures, and structural items -- No Change.