=Coca-Cola (KO) reported earnings on Thur 9 Feb 2017 (b/o)

Coca-Cola reports EPS in-line, beats on revs; guides FY17 EPS below consensus :

• Reports Q4 (Dec) earnings of $0.37 per share, in-line with the Capital IQ Consensus of $0.37; revenues fell 5.9% year/year to $9.41 bln vs the $9.17 bln Capital IQ Consensus. Revenue was impacted by a foreign currency exchange headwind of 2% and a headwind from acquisitions, divestitures, and structural items of 10%. Organic revenues (non-GAAP) grew 6% in the quarter, driven by price/mix growth of 6%. Core business organic revenues (non-GAAP) grew 7% in the quarter.
  • Comparable currency neutral operating margin (non-GAAP) in the quarter expanded nearly 230 basis points and expanded nearly 140 basis points for the full year. These improvements were driven by continued extensions of pricing initiatives, a slightly favorable cost environment, and our productivity program.
• FY17 guidance:
  • Co issues downside guidance for FY17, sees EPS -1% to -4% or roughly $1.83-1.89 vs. $1.97 Capital IQ Consensus Estimate.
  • Sees approximately 3% growth in organic revenues (non-GAAP) 7% to 8% growth in comparable currency neutral income before taxes (structurally adjusted) (non-GAAP), driven by strong operating performance partially offset by an increasing interest rate environment.
• For Q1:
  • KO sees Net revenues: 12% to 13% headwind from acquisitions, divestitures, and structural items; 1% to 2% currency headwind based on the current spot rates and including the impact of hedged positions. 
  • Income before taxes: 1% to 2% structural headwind; 3% to 4% currency headwind based on the current spot rates and including the impact of hedged positions. 
• For FY18: 
  • Net revenues: 16% to 17% headwind from acquisitions, divestitures, and structural items
  • Income before taxes: 1% to 2% structural headwind; low single-digit currency headwind based on the current spot rates and including the impact of hedged positions