The 10-second takeaway
For the quarter ended March 29 (Q1), Coca-Cola met expectations on revenues and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue shrank slightly. Non-GAAP earnings per share grew. GAAP earnings per share dropped.
Margins shrank across the board.
Coca-Cola notched revenue of $11.04 billion. The 11 analysts polled by S&P Capital IQ predicted sales of $10.97 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $0.46. The 16 earnings estimates compiled by S&P Capital IQ predicted $0.45 per share. Non-GAAP EPS of $0.46 for Q1 were 2.2% higher than the prior-year quarter's $0.45 per share. GAAP EPS of $0.39 for Q1 were 13% lower than the prior-year quarter's $0.45 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 60.8%, 20 basis points worse than the prior-year quarter. Operating margin was 21.8%, 160 basis points worse than the prior-year quarter. Net margin was 15.9%, 250 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $13.29 billion. On the bottom line, the average EPS estimate is $0.65.
Next year's average estimate for revenue is $48.82 billion. The average EPS estimate is $2.14.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 6,393 members out of 6,709 rating the stock outperform, and 316 members rating it underperform. Among 1,875 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,823 give Coca-Cola a green thumbs-up, and 52 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 $41.80.
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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 recommends 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.