Post Earnings Coverage as Coca-Cola Q3 Organic Revenue Rise 3%

Upcoming AWS Coverage on Monster Beverage Post-Earnings Results

LONDON, UK / ACCESSWIRE / November 4, 2016 / Active Wall St. announces its post-earnings coverage on The Coca-Cola Co. (NYSE: KO). The company posted its financial results for the third quarter fiscal 2016 (Q3 FY16) on October 26, 2016. The Atlanta, Georgia-based company’s quarterly net revenues declined 7% y-o-y; however, organic revenues recorded a 3% y-o-y growth during the reported period. Register with us now for your free membership at: http://www.activewallst.com/register/.

One of Coca-Cola’s competitors within the Beverages – Soft Drinks space, Monster Beverage Corp. (NASDAQ: MNST), reported its third quarter ended September 30, 2016 on Thursday, November 3, 2016, after the close of the market. AWS will be initiating a research report on Monster Beverage in the coming days.

Today, AWS is promoting its earnings coverage on KO; touching on stock like MNST. Get our free coverage by signing up to:

http://www.activewallst.com/registration-3/?symbol=KO

http://www.activewallst.com/registration-3/?symbol=MNST

Earnings Reviewed

During the quarter ended on September 30, 2016, Coca-Cola reported net operating revenues of $10.63 billion, which was below $11.43 billion recorded at the end of Q3 FY15. However, net operating revenues numbers for the reported quarter outperformed market expectations of $10.55 billion. The company faced a 2% foreign currency exchange translation headwind along with 8% headwind from acquisitions, divestitures, and structural items. However, non-GAAP grew 3% y-o-y in the reported quarter.

The beverage company reported Q3 FY16 net income of $1.05 billion, or $0.24 per diluted share, compared to $1.45 billion, or $0.33 per diluted share, in Q3 FY15. The company’s non-GAAP net income came in at $2.15 billion, or $0.49 per diluted share, in Q3 FY16 compared to $2.23 billion, or $0.51 per diluted share, in the year ago quarter. However, non-GAAP EPS numbers beat market earnings estimates of $0.48 per diluted share.

Operating Metrics

In Q3 FY16, the company’s gross profit fell to $6.52 billion from $6.85 billion in the prior year’s quarter. However, gross margin improved from 61.1% of net operating revenues in Q3 FY16 as compared to 59.9% of net operating revenues in last year’s quarter. Coca-Cola’s Q3 FY16 operating income was down 5% y-o-y to $2.27 billion. However, operating margin improved from 20.8% of net operating revenues in Q3 FY15 to 21.4% of net operating revenues in the reported period.

Segment Performance

During Q3 FY16, EMEA segment’s revenue came in at $1.85 billion compared to $1.93 billion in the year ago period. The segment reported Q3 FY16 operating income of $914 million compared to $930 million in Q3 FY15.

Coca-Cola’s Latin America business’ revenues were $965 million in Q3 FY16, which was 4% less than the last year’s recorded revenues of $1.01 billion. The segment reported operating income of $435 million versus $538 million in Q3 FY15.

North America segment reported revenues of $2.66 billion in Q3 FY16, up from $2.58 billion. The segment had an operating income of $666 million compared to $585 million in the last year’s quarter.

The company’s Asia/Pacific segment’s revenues were up 4% y-o-y to $1.46 billion for Q3 FY16. Further, the segment’s operating income improved to $583 million in Q3 FY16 from $571 million in the year ago quarter.

In Q3 FY16, Bottling Investments segment’s revenue was down 19% y-o-y to $4.84 billion. However, the segment’s operating income surged to $124 million in Q3 FY16 from $85 million in Q3 FY15.

Cash Flow & Balance Sheet

For the nine months ended on September 30, 2016, Coca-Cola reported net cash flow from operations of $6.72 billion compared to $8.39 billion in the year ago comparable period. The decline in cash from operations was primarily due to the deconsolidation of the company’s German bottling operations, the impact of contributions to pension plans, and fluctuations in foreign exchange translation.

The company had cash and cash equivalents balance of $11.15 billion as on September 30, 2016, compared to $7.31 billion at the close of books on December 31, 2015. Furthermore, the company ended the quarter with total long-term debt of $31.66 billion compared to $28.31 billion as on December 31, 2015.

Dividend

In a separate press release on October 20, 2016, Coca-Cola’s Board of Directors declared a quarterly cash dividend of $0.35 per common share. The dividend is payable on December 15, 2016, to all shareowners of record as of December 01, 2016.

Outlook

For full FY16, Coca-Cola re-affirmed its previously provided earnings guidance numbers. It expects organic revenues growth to be 3% for the year with 6% to 7% headwind from acquisitions, divestitures, and structural items, and a 2% to 3% currency headwind based on the current spot rates, including the impact of hedged positions. The company’s management further anticipates a 4% to 7% y-o-y decline in comparable non-GAAP EPS in FY16.

Stock Performance

On Thursday, November 03, 2016, Coca-Cola’s shares were slightly down 0.05%, finishing the day at $42.03. A total volume of 11.24 million shares have exchanged hands. For the last twelve months, the stock has gained 3.32%. Furthermore, on a year to date basis, the stock gained 0.17%. The stock is trading at a PE ratio of 24.20 and has a dividend yield of 3.33%.

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