Coca Cola (KO) Tops Q3 EPS by 1c; Outlook Reaffirmed for Organic Revenues and Comparable EPS

Coca Cola (NYSE: KO) reported Q3 EPS of $0.50, $0.01 better than the analyst estimate of $0.49. Revenue for the quarter came in at $9.1 billion versus the consensus estimate of $8.73 billion.

Full Year 2017 Underlying Performance:

• Approximately 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% headwind based on the current rates and including the impact of hedged positions – Updated
• Comparable income before income taxes (non-GAAP): 1% headwind based on the current rates and including the impact of hedged positions – Updated

Full Year 2017 Acquisitions, Divestitures, and Structural Items Impact:

• Comparable net revenues (non-GAAP): 18% headwind from acquisitions, divestitures, and structural items – Updated
• Comparable income before income taxes (non-GAAP): 6% to 7% structural headwind – Updated

Full Year 2017 Other Items:

• Underlying effective tax rate (non-GAAP): 24.0%* – No Change
• Net share repurchases (non-GAAP): Approximately $2.0 billion – No Change
• Net capital expenditures: Approximately $2.0 billion – Updated

Full Year 2017 EPS:

• Comparable EPS (non-GAAP): Even to 2% decline versus $1.91 in 2016 – No Change

Fourth Quarter 2017 Considerations:

• Comparable net revenues (non-GAAP): 27% headwind from acquisitions, divestitures, and structural items; 0% to 1% currency tailwind based on the current rates and including the impact of hedged positions – New
• Comparable income before income taxes (non-GAAP): 11% to 12% structural headwind; 4% to 5% currency tailwind 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
• Comparable income before income taxes (non-GAAP): 1% to 2% structural headwind; low single-digit currency headwind based on the current rates and including the impact of hedged positions – No Change
• Underlying effective tax rate (non-GAAP): 26.0%* – No Change

For earnings history and earnings-related data on Coca Cola (KO) click here.

You May Also Be Interested In

• FedEx falls 4% as CY2026 profit forecast misses expectations despite Q4 beat
• Bernstein SocGen Group Reiterates Outperform Rating on Hermes International (RMS:FP) (HESAY) after cautious commentary
• KB Home (KBH) Misses Q2 EPS by 2c; Offers Outlook