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What’s the Latest News for Coca-Cola?

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Price movement

Coca-Cola (KO) has a market cap of $180.2 billion. It fell 0.36% to close at $41.65 per share on January 4, 2017. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were 0.10%, 3.2%, and 0.46%, respectively, on the same day.

KO is trading 0.42% above its 20-day moving average, 0.63% above its 50-day moving average, and 3.1% below its 200-day moving average.

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Related ETF and peers

The Schwab US Broad Market ETF (SCHB) invests 0.75% of its holdings in Coca-Cola. The YTD price movement of SCHB was 1.6% on January 4, 2017.

The market caps of Coca-Cola’s competitors are as follows:

  • PepsiCo (PEP): $150.9 billion
  • Dr Pepper Snapple Group (DPS): $16.8 billion

Latest news on KO

In a January 4, 2017, press release, Bloomberg reported, “Coca-Cola Co. was sued by activists who compare the beverage giant’s advertising tactics to the tobacco industry’s past efforts in minimizing the health effects of its products and targeting children to replenish the ranks of its customers.”

It also reported, “The nonprofit Praxis Project seeks to stop Coke and the Washington-based American Beverage Association from deceptive advertising of sugary drinks, particularly to children, and for the disclosure of documents related to their impact on health. Studies have linked sugary drinks to obesity, Type 2 diabetes and cardiovascular disease, the group said.”

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Coca-Cola’s performance in 3Q16

Coca-Cola (KO) reported 3Q16 net operating revenue of $10.6 billion, a YoY (year-over-year) fall of 7.0% from its net operating revenue of $11.4 billion in 3Q15. The fall was due to the impact of foreign exchange, acquisitions, divestitures, and structural items.

The company’s gross profit margin and operating margin expanded 80 basis points and 60 basis points, respectively. Operating margin includes the impact of foreign exchange and structural changes.

Net income, earnings per share, and cash

Coca-Cola’s net income and EPS (earnings per share) fell to $1.0 million and $0.24, respectively, in 3Q16, compared to $1.4 million and $0.33, respectively, in 3Q15. It reported non-GAAP (generally accepted accounting principles) EPS of $0.49 in fiscal 3Q16, a YoY fall of 3.9%.

KO’s total cash, cash equivalents, and short-term investments rose 43.6% YoY, and its inventories fell 3.4% between 4Q15 and 3Q16.

Projections

Coca-Cola (KO) made the following projections for fiscal 2016:

  • organic revenue to rise 3.0%
  • comparable currency-neutral income before tax to rise 6.0%–8.0%
  • comparable EPS to fall 4.0%–7.0%

In the next and final part of this series, we’ll take a look at Procter & Gamble (PG).

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