Coca-Cola Shares Fizzle on Second-Quarter Earnings

Coca-Cola sodas including Coke, Fanta and Sprite saw gains, but Diet Coke declined.

Jul 22, 2014 at 11:45AM

Shares of Coca-Cola (NYSE:KO) fell more than 3% in morning trading Tuesday after the king of pop reported second-quarter earnings that failed to impress. For the period ended June 27, Coke generated a profit of $0.58 per share, down from $0.59 per share a year ago. This was well below the $0.63 per share that analysts were expecting. Revenue also fell more than 1% to $12.5 billion in the quarter, while Wall Street had looked for $12.8 billion. 


Source: The Motley Fool.

Despite declining profitability and revenue, there were some bright spots to Coke's second quarter. Global beverage volume climbed 3%, while worldwide sparkling beverage volume grew 2%. This was primarily driven by Coca-Cola's sponsorship of the FIFA World Cup and the global rollout of its "Share a Coke" campaign. Nevertheless, North America volume remained flat. Sodas including Coke, Fanta and Sprite saw gains, but Diet Coke declined. Diet Coke is the country's No. 2 soda, behind Coke and ahead of Pepsi.

Executives at Coca-Cola and PepsiCo have blamed a recent decline in diet sodas on concerns people have about artificial sweeteners such as aspartame. To address those worries, the companies have been working behind the scenes to assure dietitians and others about the safety of such sweeteners.

Coca-Cola's Sprite brand was the best performer in the quarter, with international volume up 6%. That compared to just 1% for Coke and 2% for its Fanta beverages. Looking ahead, Coca-Cola said it expects structural changes to have an unfavorable impact of $0.02 per share on the balance sheet in the second half of the year. Shares of Coca-Cola were trading at about $41 apiece as of 11 a.m.

-- Material from The Associated Press was used in this report.

Leaked: Apple's next smart device (warning, it may shock you)
Apple recently recruited a secret-development "dream team" to guarantee its newest smart device was kept hidden from the public for as long as possible. And there's one small company making Apple's gadget possible. And its stock price has nearly unlimited room to run for early-in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here!

Tamara Rutter owns shares of Apple. The Motley Fool recommends Apple, Coca-Cola, and PepsiCo. The Motley Fool owns shares of Apple and PepsiCo and has the following options: long January 2016 $37 calls on Coca-Cola and short January 2016 $37 puts on Coca-Cola. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

A Financial Plan on an Index Card

Keeping it simple.

Aug 7, 2015 at 11:26AM

Two years ago, University of Chicago professor Harold Pollack wrote his entire financial plan on an index card.

It blew up. People loved the idea. Financial advice is often intentionally complicated. Obscurity lets advisors charge higher fees. But the most important parts are painfully simple. Here's how Pollack put it:

The card came out of chat I had regarding what I view as the financial industry's basic dilemma: The best investment advice fits on an index card. A commenter asked for the actual index card. Although I was originally speaking in metaphor, I grabbed a pen and one of my daughter's note cards, scribbled this out in maybe three minutes, snapped a picture with my iPhone, and the rest was history.

More advisors and investors caught onto the idea and started writing their own financial plans on a single index card.

I love the exercise, because it makes you think about what's important and forces you to be succinct.

So, here's my index-card financial plan:


Everything else is details. 

Something big just happened

I don't know about you, but I always pay attention when one of the best growth investors in the world gives me a stock tip. Motley Fool co-founder David Gardner (whose growth-stock newsletter was rated #1 in the world by The Wall Street Journal)* and his brother, Motley Fool CEO Tom Gardner, just revealed two brand new stock recommendations moments ago. Together, they've tripled the stock market's return over 12+ years. And while timing isn't everything, the history of Tom and David's stock picks shows that it pays to get in early on their ideas.

Click here to be among the first people to hear about David and Tom's newest stock recommendations.

*"Look Who's on Top Now" appeared in The Wall Street Journal which references Hulbert's rankings of the best performing stock picking newsletters over a 5-year period from 2008-2013.

Compare Brokers