The Coca-Cola Company (NYSE:KO) announced its results for the most recent quarter on October 16, 2012. Coca-Cola is a leading manufacturer of nonalcoholic beverage concentrates and syrups.

A business' earnings are the main determinant of its share price because earnings and the circumstances relating to them can indicate whether the business will be profitable and successful in the long run. SEE: 12 Things You Need To Know About Financial Statements

The Numbers: The Coca-Cola fell short of estimates with adjusted net income of 51 cents per share and revenues of $12.34 billion. Analysts were expecting adjusted net income of $1.02 per share and revenues of $12.98 billion. Revenue climbed 0.8% from the same period last year. The Coca-Cola's revenue has grown during each of the past four quarters on a year-over-year basis. The Coca-Cola's net income for the third quarter was $2.31 billion, a 4.1% increase from last year. Last quarter's rising profit follows a drop of 0.3% to $2.05 billion in the previous quarter.

Management Quote: Muhtar Kent, Chairman and Chief Executive Officer of The Coca-Cola Company said, " We are pleased with our third quarter and year-to-date results. We continue to deliver consistent and solid performance, with our business growing worldwide volume by 4% in the quarter and 5% year-to-date. Importantly, we realized growth in the quarter across all five of our global geographic operating groups, despite continued volatility in the worldwide economy."

A Look Back: Margins were up in the second quarter, following a drop in the previous quarter. Gross margin grew 0.5 percentage point from the year-earlier quarter to 60.7%. In the first quarter, the figure rose 0.8 percentage point to 60.1% from the year earlier quarter.

Net income has dropped 10.3% year-over-year on average across the last five quarters. Performance was hurt by a 71.3% decline in the fourth quarter of the last fiscal year from the year-earlier quarter.

Looking Ahead: Expectations for the company's next-quarter performance are more favorable than they were a month ago. The average estimate for the fourth quarter is now at 87 cents per share, up from 87 cents. When analyst increase earnings estimates investors can assume business has been stronger than first thought and is an encouraging sign for investors. Over the past 60 days, the average estimate for the fiscal year has reached $4.03 per share, a decline from $4.09.

Related Articles
  1. Stock Analysis

    Starbucks: Profiting One Cup at a Time (SBUX)

    Starbucks is everywhere. But is it a worthwhile business? Ask the shareholders who've made it one of the world's most successful companies.
  2. Stock Analysis

    How Medtronic Makes Money (MDT)

    Here's the story of an American medical device firm that covers almost every segment in medicine and recently moved to Ireland to pay less in taxes.
  3. Investing News

    Latest Labor Numbers: Good News for the Market?

    Some economic numbers are indicating that the labor market is outperforming the stock market. Should investors be bullish?
  4. Investing News

    Stocks with Big Dividend Yields: 'It's a Trap!'

    Should you seek high yielding-dividend stocks in the current investment environment?
  5. Investing News

    Should You Be Betting with Buffett Right Now?

    Following Warren Buffett's stock picks has historically been a good strategy. Is considering his biggest holdings in 2016 a good idea?
  6. Products and Investments

    Cash vs. Stocks: How to Decide Which is Best

    Is it better to keep your money in cash or is a down market a good time to buy stocks at a lower cost?
  7. Investing News

    Who Does Cheap Oil Benefit? See This Stock (DG)

    Cheap oil won't benefit most companies, but this retailer might buck that trend.
  8. Investing

    How to Ballast a Portfolio with Bonds

    If January and early February performance is any guide, there’s a new normal in financial markets today: Heightened volatility.
  9. Stock Analysis

    Performance Review: Emerging Markets Equities in 2015

    Find out why emerging markets struggled in 2015 and why a half-decade long trend of poor returns is proving optimistic growth investors wrong.
  10. Investing News

    Today's Sell-off: Are We in a Margin Liquidation?

    If we're in market liquidation, is it good news or bad news? That party depends on your timeframe.
RELATED FAQS
  1. How do dividends affect retained earnings?

    When a company issues a cash dividend to its shareholders, the retained earnings listed on the balance sheet are reduced ... Read Full Answer >>
  2. What is the difference between called-up share capital and paid-up share capital?

    The difference between called-up share capital and paid-up share capital is investors have already paid in full for paid-up ... Read Full Answer >>
  3. Why would a corporation issue convertible bonds?

    A convertible bond represents a hybrid security that has bond and equity features; this type of bond allows the conversion ... Read Full Answer >>
  4. How does additional paid in capital affect retained earnings?

    Both additional paid-in capital and retained earnings are entries under the shareholders' equity section of a company's balance ... Read Full Answer >>
  5. What types of capital are not considered share capital?

    The money a business uses to fund operations or growth is called capital, and there are a number of capital sources available. ... Read Full Answer >>
  6. What is the difference between issued share capital and subscribed share capital?

    The difference between subscribed share capital and issued share capital is the former relates to the amount of stock for ... Read Full Answer >>
COMPANIES IN THIS ARTICLE
Trading Center