Coca-Cola's Stock Unmoved After Mixed Q1 Report

Shares of The Coca-Cola Co KO inched higher by 0.09 percent early Tuesday morning after the company reported its first-quarter results.

Q1 Print And Executive Commentary

Coca-Cola said it earned $0.43 per share in the quarter on revenue of $9.12 billion. Wall Street analysts were expecting the company to earn $0.44 per share on revenue of $8.89 billion.

Revenue fell 11 percent from the same quarter a year ago, 10 percent of which was attributed to impacts from structural changes and 1 percent due to foreign currency. However, organic revenue was flat year-over-year as a 3 percent improvement in price/mix was also met with a 3 percent decline in concentrate sales.

Net income fell from $1.483 billion to $1.182 billion.

Muhtar Kent, chairman and CEO of Coca-Cola, said:

"The first quarter performance was in line with our plan, and we remain on track to deliver our underlying revenue and profit targets for the full year. As anticipated, revenues in the quarter were adversely impacted by two fewer days and the shift of the Easter holiday. Most importantly, we continue to execute against the long-term strategic transformation plan for the Company — a plan that I am confident will deliver even greater shareowner and stakeholder value in the years to come."

Highlights And Guidance

Here are some more highlights from the quarter:

• Coca-Cola's value share growth outpaced its volume share in the total nonalcoholic ready-to-drink category.
• Coca-Cola gained value share in sparkling soft drinks and juice, and plant-based beverage categories.
• Total unit case volume was even.
• Growth in developed markets outperformed other markets.
• Operating margins expanded by more than 90 basis points.
• Cash from operations rose 30 percent from a year ago to $788 million.

Coca-Cola also issued guidance as follows:

• Coca-Cola reaffirmed a 3 percent growth in organic revenue throughout 2017.
• Coca-Cola reaffirmed a 7 to 8 percent growth in comparable currency neutral income before taxes throughout 2017.
• Full-year earnings per share is expected to fall 1 to 3 percent from 2016's $1.91.
• A 17 to 18 percent headwind from acquisitions, divestitures, and structural items in the second quarter.

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