UPDATE: Coca-Cola Posts Downbeat Q3 Revenue, Shares Fall
The Coca-Cola Company (NYSE: KO) reported weaker-than-expected revenue for the third quarter and announced a new cost-cutting plan.
Its worldwide beverage volumes rose 1%, while soda volume came in flat. In North America, its soda volumes dropped 1%.
The Atlanta, Georgia-based company posted quarterly earnings of $2.11 billion, or $0.48 per share, compared to $2.45 billion, or $0.54 per share, in the year-ago period. Excluding items, the company earned $0.53 per share.
Its revenue fell to $11.98 billion in the quarter, while currency-neutral net revenue gained 1%. Analysts were expecting earnings of $0.53 per share on revenue of $12.19 billion.
Muhtar Kent, Chairman and Chief Executive Officer of The Coca-Cola Company said, “Earlier this year, we announced five strategic priorities to restore momentum and reinvigorate long-term sustainable growth. While we have begun to see early signs of progress, we recognize that we need to increase the scope and pace of change as we continue to face a challenging macroeconomic environment.”
Coca-Cola announced its plans to lower annual expenses by $3 billion by 2019. It also reported streamlining of global supply chain.
Year-to-date cash from operations rose 3% to $8.0 billion, while year-to-date net share repurchases totaled $1.9 billion.
The company said it projects EPS to be below long-term growth forecast in 2014. The company adjusted its net revenue target to mid single-digit growth.
Coca-Cola shares slipped 3.90% to $41.60 in pre-market trading.
© 2017 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.