Ahead Of Coca-Cola's Q4 Results

(RTTNews) - Beverages giant Coca-Cola Co. (KO) continues to focus on creating value as it executes against its strategic priorities, amid the challenging macro environment. The company is also refranchising its bottling operations in North America, Europe and Africa to focus more on core business of brand development and marketing.

The firm's strategy remains focused on brands, customers and capabilities, but with a very tight discipline around the key metrics to drive shareholder value.

Impelled by its strategic initiatives, the company's results for the first three quarters of 2015 were solid, especially in North America. Meanwhile, the company expects a greater headwind from currency to continue in the fourth quarter as well.

Coca-Cola now expects currency to be a 7 point headwind on net revenues, a 13 point headwind on operating income and an 11 point headwind on income before taxes in the fourth quarter. The company said its previously announced expectations regarding fourth-quarter comparable currency neutral earnings per share growth remains unchanged.

The company is scheduled to release its fourth-quarter results before the bell on Tuesday, February 9, with analysts polled by Thomson Reuters estimating earnings of $0.37 per share on revenue of $9.91 billion. Analysts' estimate typically exclude certain special items.

In the previous quarter...

Coca-Cola's third-quarter attributable net income was $1.45 billion or $0.33 per share, down from $2.11 billion or $0.48 per share in the previous year.

The latest quarter's results included charges of $0.18 per share, primarily related to refranchising of certain territories in North America and costs associated with the company's productivity program.

Comparable earnings per share were $0.51, compared to $0.53 last year. On average, 20 analysts polled by Thomson Reuters expected earnings of $0.50 per share. Analysts' estimates typically exclude special items.

Net operating revenues declined 5% to $11.43 billion from $11.98 billion in the prior year. Analysts expected revenues of $11.54 billion. However, organic revenue grew 3%.

Coca-Cola's results, like those of several multinational companies, was negatively impacted by a strong U.S. dollar. The company noted that fluctuations in foreign currency exchange rates led to a 12 point headwind on comparable operating income and earnings per share in the quarter.