Coca-Cola Beats on EPS but GAAP Results Lag

Coca-Cola (NYSE: KO  ) reported earnings on Feb. 7. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Coca-Cola met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue expanded and GAAP earnings per share shrank significantly.

Gross margins grew, operating margins increased, and net margins dropped.

Revenue details
Coca-Cola reported revenue of $11.04 billion. The 10 analysts polled by S&P Capital IQ predicted revenue of $11.01 billion. Sales were 5.2% higher than the prior-year quarter's $10.49 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
Non-GAAP EPS came in at $0.79. The 14 earnings estimates compiled by S&P Capital IQ averaged $0.78 per share on the same basis. GAAP EPS of $0.72 for Q4 were 71% lower than the prior-year quarter's $2.46 per share.

Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 60.1%, 90 basis points better than the prior-year quarter. Operating margin was 17.7%, 390 basis points better than the prior-year quarter. Net margin was 15.0%, 4,000 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $10.95 billion. On the bottom line, the average EPS estimate is $0.91.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 6,049 members out of 6,357 rating the stock outperform, and 308 members rating it underperform. Among 1,758 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,709 give Coca-Cola a green thumbs-up, and 49 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average price target is $74.10.

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