Coke Q3 Results Beats Analysts Estimate with 3% Revenue Growth

Coca ColaIn the Q3 results of the fiscal year 2017, the well-known soft drink brand Coca-Cola Company (NYSE: KO) beat the expectation of the market analysts. This carbonated drinking company was able to achieve this feat after an increase in the volume of Coca-Cola Zero Sugar in the United States and curtailing the expenses.

However, there is a 14.8 percent yearly decline in the revenue which keeps the stocks of the company bounded in the range of 46.00 and 46.60.

Coca-Cola is working hard to restructure itself to meet the preferences and needs of the changing customer. Hence, we speculate the stock prices of the company to be in the uptrend for a short while in future.

This Atlanta-based company has reported a decline of 15% in revenues to $9.078 billion from $10.633 billion during the same period last year. For the quarter ending September, the net income was $1.447 billion which is a 38% increase from $1.046 last year. The earnings in Q3 of fiscal 2017 on per share basis is $0.33 which is 40% increase from $0.24 during the same period the previous year. This soft drink company said that the decline in revenues was primarily due to re-franchising of its bottling plants.

If we exclude the tax charges, transaction gains and restructuring charges/asset impairment, the non-GAAP earnings in Q3 2017 grew to $2.176 billion which comes to $.50 per share as compared to $2.150 billion or $0.49 per share in the 3rd quarter of 2016. Analysts from Thomas Reuters had expected the company to earn revenues worth $8.72 billion or $0.49 per share.


The total unit case volume has been flat for Coca-Cola, and it excludes the currency exchange pricing and impact. However, the company was able to register growth all because of higher pricing and rise in sales for its expensive products.

There is a growth of 400 basis points in the Non-GAAP earnings, and it is possible due to expense management and divestments of bottling business.

The soft drink manufacturing company has registered growth of 10% in sales in Latin America even though there is a drop in sales of 3 percent. Also, organic revenue growth reported over here is 6 percent. The volume remains the same in North America. There is a marginal increase of 1 percent in capacities in Africa, Middle East and Europe whereas the amount grew by 3 percent in the Asia Pacific. There is 1% growth in the volume of other products like tea, coffee, dairy products, plant-based beverages and juice. There is a drop of 1% in sales for water and sports drink while there were no changes in the sale of soda.

Coca-Cola is focusing on innovations and acquisitions at the moment. There is a double growth in the sales of Coca-Cola Zero Sugar in Q3 2017 as compared to last year. In October, the company bought Topo Chico which is a famous sparkling mineral water brand. In the year 2018, it is planning to partner with McDonald’s to launch a ready to drink coffee line called “Frappe“. Also, it is working to launch lesser known brands like Blue Sky Soda. In Spain, it has started Royal Bliss which is an alcohol mixer.

In the current fiscal year, the company is looking forward to organic growth of 3 percent. It is expecting the earnings to either remain flat or decrease by 2% from $1.91 per share. Hence the shares of Coca-Cola will remain bullish after a vital acquisition and increased sales of its new products.

Coca Cola Stock Price Nov 1st 2017

Coca Cola Stock Price Nov 1st, 2017

The stock of Coca-Cola is consolidating at 45 levels. The reading of the Momentum Indicator is more than 100 while moving average oscillator is travelling towards zero level. This confirms the share prices of this soft drink manufacturing company to be in the bullish zone.

To make a profit, traders should buy a call option from a reputed Binary Options brokers featured here. One should BUY the option when the stock is trading around $46 in cash market.

Rich Archer

Rich Archer

Hi, my name is Rich Archer. I am living in London. Welcome to Binary Manual. Reach to Binary Options broker reviews and market news here.

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