Coca-Cola Q3 Profit Beats View, But Revenues Miss On Strong Dollar

(RTTNews) - Beverages giant Coca-Cola Co. (KO) Wednesday said its third-quarter profit declined 31 percent from the prior year on one-time charges and lower revenue that was impacted by a strong U.S. dollar. However, adjusted earnings per share beat analysts' expectations, while the topline missed their estimates.

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.

For fiscal 2015, the company estimates that currency will be an approximate 7 point headwind on net revenues and an 11 point headwind on operating income.

In the latest quarter, Coca-Cola's global volume grew 3 percent from last year. Global sparkling beverage volume growth of 2 percent was led by 1 percent growth in brand Coca-Cola and 8 percent increase in Coca-Cola Zero, partially offset by a 7 percent decline in Diet Coke.

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 percent to $11.43 billion from $11.98 billion in the prior year. Analysts expected revenues of $11.54 billion. However, organic revenue grew 3 percent.

Looking ahead, the company continues to estimate that the net impact of structural items on full-year 2015 results will be a 1 point headwind on both net revenues and income before taxes. The company also affirmed its outlook for fiscal 2015 net share repurchases of $2.0 billion to $2.5 billion.

The company now expect full-year 2015 comparable currency neutral earnings per share growth of 5 percent, in line with the range it laid out at the beginning of the year.

KO is trading at $41.78, down $0.51 or 1.19 percent on a volume of 969,005 shares.