Coca-Cola’s 1QFY14 Earnings In Line, But Revenues Exceed Expectations

The Coca-Cola Company’s first quarter earnings for fiscal 2014 came in line with expectations, while revenues ran ahead of analysts’ projections despite a continuing drop in carbonated soda sales and increased pressure from foreign currency fluctuations


The Coca-Cola Company (KO) reported its first quarter results for fiscal 2014 (1QFY14) today before markets opened. The Atlanta, Georgia-based beverage-maker had missed earnings expectations for the last two quarters, so today’s strong results came as a major surprise.

In the quarter ended March 31, Coca-Cola’s per share earnings (EPS) fell 4% from the same quarter last year to $0.44, right in line with analysts’ estimates. Revenues, too, fell 4% YoY to $10.58 billion, but remained higher than analysts’ mean projection of $10.53 billion. The revenue beat is particularly significant since Coca-Cola had missed sales expectations in four of its last six quarterly results. Revenues were down largely because of a decline in sales volumes of Coca-Cola’s flagship Coke and Diet Coke brands as consumers shift to healthier, non-carbonated beverage categories.

But when the impact of structural changes and foreign currency fluctuations is disregarded, both revenues and operating income actually rose 2% from last year. This highlights the growing impact of currency rate fluctuations on global beverage giants’ toplines in recent quarters. The impact of currency fluctuations is comparably worse than last time around: in Coca-Cola’s fourth-quarter earnings results for fiscal 2013, exchange rate fluctuations had negatively impacted revenues by 2% and net income by 4%, compared to 6% in the latest quarter.

 

I don't know how a 4% drop in EPS is considered as a strong result.
But other than that, nothing special here. A very stable company so it's quite rare to have any big news.

 

I am a long-time investor of Coca-Cola (KO) and Warren Buffet is of course as well. As long as we live on this Earth, human beings will drink Cola. And, as long as that happens, Coca-Cola will be number one! That is about as simple as investing gets right there.

 

Yeah that was right about Cola it is never finished till all human beings are lived because they drink cola in any age group they love it, so it market will always sustainable

 

I am not a huge fan of Coca Cola myself. I also would never invest anymore in it due to Americans are starting to learn more and more about the health concerns of the product. It is at least good to see any company with high earnings. I take it as a decent sign for the market.

 

It's case to say that not news is good news: " Revenues, too, fell 4% YoY to $10.58 billion". When revenues fall to $10.58 billion I suppose everyone wants a piece of that drop...

 

I would love to have my revenues fall to 10.58 dollars Peninha. ha ha.. Actually , I would love to have them grow that high. I just can't even imagine the problems of such a rich corporation.

 

Coca cola is always beating pepsico in stocks , world wide most of the people prfer coca cola rather than pepsi , stocks and being cleared and shares are going high