The Coca-Cola Company (NYSE: KO), the world's largest manufacturer, distributor, and marketer of non-alcoholic beverage concentrates and syrups, is scheduled to report its second quarter FY 2011 financial results on July 19 before the market opens. In the last four quarters, the company's reported EPS exceeded Wall Street's consensus estimates in quarters ended June 2010 and September 2010 by margins of 2.90 percent and 3.40 percent. For the quarter ended December 2010, the reported EPS met the estimates and for quarter ended March 2011, the reported EPS missed Wall Street estimates by a margin of 1.10 percent.
Coca Cola sells its concentrated forms of its beverages to bottlers which produce, package, and sell the finished products to retailers. The company is known for its carbonated soft drinks, and lately the company has recognized the need of the non-carbonated drinks, as consumers are more health conscious. The company has launched non-carbonated soft drink products and acquired companies like Glaceau. The company has also acquired some international juice brands, such as Russia's OAO Nidan Juices. The Russian juice market is estimated at $3.2 billion.
For Q1 FY 2011
- Net revenue increased by 40 percent to $10.5 billion, compared with net revenue of $7.5 billion in the first quarter FY 2010.
- Comparable net revenue also increased 40 percent, reflecting a 4 percent increase in concentrate sales, a 2 percent currency benefit.
- Operating income grew 4.5 percent to $2.28 billion, compared with operating income of $2.18 billion in last year's same quarter.
- Net income was $1.9 billion, or $0.82 per diluted share, compared wi9th net income of $1.61 billion, or $0.69 per diluted share.
- Cash from operations was $458 million. Net cash provided by financing activities was $986 million.
For FY 2010
For full year 2010, Coca-Cola reported net revenue of $35.12 billion, an increase of 17 percent compared with net revenue of $30.1 billion in FY 2009. Net income for the year was $11.8 billion, or $5.06 per diluted share, compared with net income of $6.82 billion, or $2.93 per diluted share, reported for FY 2009.
Analysts Forecast
For the second quarter, analysts' EPS estimates range from a low of $1.09 to a high of $1.21 per share, compared with a consensus estimate of $1.06 per share to $1.16 per share in the year ago quarter. For this quarter, analysts' revenue estimates range from a low of $11 billion to a high of $12.83 billion, compared with a consensus estimate of $8.67 to $12.39 billion in the same quarter a year ago. For the second quarter, the consensus EPS forecast has been decreased from $1.17 per share estimated 30 days ago to the current estimate of $1.16 per share.
In the last 52-weeks, the company's stock has been trading in the range of $49.47 to $68.77. The last trading price of KO was $66.71, up 1.03 percent, on June 29. On March 4, analysts at UBS upgraded the stock rating to Buy from Neutral.
