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Coca-Cola FEMSA Increases Sales but Misses Revenue Estimate

By Seth Jayson - Updated Apr 10, 2017 at 1:41PM

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Just the facts, Fool.

Coca-Cola FEMSA (NYSE: KOF) reported earnings on April 24. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Coca-Cola FEMSA missed estimates on revenues and whiffed on earnings per share.

Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share shrank slightly. GAAP earnings per share shrank.

Gross margins expanded, operating margins dropped, net margins contracted.

Revenue details
Coca-Cola FEMSA notched revenue of $2.74 billion. The three analysts polled by S&P Capital IQ anticipated revenue of $2.84 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 details
EPS came in at $0.98. The two earnings estimates compiled by S&P Capital IQ averaged $1.17 per share. Non-GAAP EPS of $0.98 for Q1 were 3.0% lower than the prior-year quarter's $1.01 per share. GAAP EPS of $0.97 for Q1 were 7.6% lower than the prior-year quarter's $1.05 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 46.3%, 90 basis points better than the prior-year quarter. Operating margin was 12.1%, 70 basis points worse than the prior-year quarter. Net margin was 7.3%, 60 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $3.10 billion. On the bottom line, the average EPS estimate is $1.21.

Next year's average estimate for revenue is $12.79 billion. The average EPS estimate is $6.25.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 382 members out of 395 rating the stock outperform, and 13 members rating it underperform. Among 104 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 101 give Coca-Cola FEMSA a green thumbs-up, and three give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Coca-Cola FEMSA is underperform, with an average price target of $150.50.

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Stocks Mentioned

Coca-Cola FEMSA, S.A.B. de C.V. Stock Quote
Coca-Cola FEMSA, S.A.B. de C.V.
KOF
$57.73 (0.47%) $0.27

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