The 10-second takeaway
For the quarter ended June 29 (Q2), Coca-Cola met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved slightly and GAAP earnings per share grew.
Margins shrank across the board.
Coca-Cola tallied revenue of $13.08 billion. The 10 analysts polled by S&P Capital IQ expected revenue of $13.01 billion on the same basis. GAAP reported sales were 2.7% higher than the prior-year quarter's $12.74 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.22. The 13 earnings estimates compiled by S&P Capital IQ predicted $1.19 per share. GAAP EPS of $1.21 for Q2 were 0.8% higher than the prior-year quarter's $1.20 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 60.1%, 80 basis points worse than the prior-year quarter. Operating margin was 25.2%, 90 basis points worse than the prior-year quarter. Net margin was 21.3%, 70 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $12.39 billion. On the bottom line, the average EPS estimate is $1.03.
Next year's average estimate for revenue is $48.23 billion. The average EPS estimate is $4.01.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 6,222 members out of 6,531 rating the stock outperform, and 309 members rating it underperform. Among 1,799 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,744 give Coca-Cola a green thumbs-up, and 55 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Coca-Cola is outperform, with an average price target of $79.08.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of Coca-Cola. Motley Fool newsletter services have recommended buying shares of 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.