Coca-Cola Takes a Slight Hit on Profit

Soft drink giant Coca-Cola KO reported earnings on Tuesday and Benzinga reported that the company showed a decline in its second-quarter profit. "Coca-Cola's quarterly net income dropped to $2.79 billion, from $2.80 billion, in the year-ago period. Earnings per share rose to $1.21, from $1.20. However, analysts were expecting a profit of $1.19 per share." According to the Associated Press, the second-quarter slip comes as a result of the rising cost of ingredients, offsetting Coke's expansion overseas. Citigroup analyst Wendy Nicholson said that beverage volumes were up 9 percent (driven mostly by strength in tea, water and energy drinks), sparkling volumes were up 2 percent, and brand Coca-Cola volumes were up 2 percent. "We note these strong overall figures came despite the fact that Europe's volume fell 4% YoY, no doubt attributable to both a weak macro backdrop and poor weather in the region, along with KO facing a very tough YoY comp in Europe in 2Q." In fact most analysts agreed that despite the 4 percent fall in Europe because of the economic problems across the Atlantic, it was a decent quarter for Coca-Cola. On Tuesday, Coca-Cola traded at about $11.30, up roughly $1. Follow me @BCallwood.