Coca-Cola Q4 Adj. Profit Meets Estimates, Revenues Beat

16-Feb-2018 - USA

Beverages giant Coca-Cola Company (KO) on Friday reported a net loss for the fourth quarter, reflecting a one-time charge related to the U.S. tax reform and a double-digit decline in revenues. However, adjusted earnings per share matched analysts' expectations, while revenues beat their estimates. The company's shares are rising more than 2 percent in pre-market activity.

Fourth-quarter net loss attributable to share owners of Coca-Cola was $2.75 billion or $0.65 per share, compared to attributable net income of $550 million or $0.13 per share in the previous-year quarter. The latest quarter's results include a one-time net charge related to the Tax Reform Act of $3.6 billion, consisting of a repatriation charge of $4.6 billion and a deferred tax benefit of $1.0 billion.

Comparable earnings for the quarter were $0.39 per share, compared to $0.37, per share in the prior year. On average, 22 analysts polled by Thomson Reuters expected the company to report earnings per share of $0.39 for the quarter. Analysts' estimates typically exclude special items.

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Net operating revenues for the quarter declined 20 percent to $7.51 billion from $9.41 billion in the prior year, impacted by headwinds of 26 percent from the ongoing refranchising of bottling territories.

The Street expected revenues of $7.36 billion for the quarter.

Organic revenues grew 6 percent in the quarter, driven by price/mix growth of 4 percent and concentrate sales growth of 1 percent. Organic revenues grew 6 percent in the quarter. Total unit case volume was even for the quarter.

Looking ahead to the first quarter, Coca-Cola said its comparable net revenues will face a 26 percent from acquisitions, divestitures, and structural items, and a 2 percent currency tailwind. It will also have 1 percent tailwind from Accounting Standards Update 2014-09.

For fiscal 2018, Coca-Cola forecast comparable earnings per share from continuing operations growth in a range of 8 percent to 10 percent growth compared to $1.91 per share in 2017.

In addition, the company projects about 4 percent growth in organic revenues, and 8 percent to 9 percent growth in comparable currency neutral operating income, both on an adjusted basis.

Analysts expect earnings of $2.01 per share for the year on revenues of $30.97 billion.(dpa)

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