Coca-Cola Earnings: What to Watch
24 October 2017 - 11:29PM
Dow Jones News
By Jennifer Maloney
Coca-Cola Co. is scheduled to report its third-quarter earnings
before the market opens Wednesday. Here's what you need to
know:
EARNINGS FORECAST: Earnings per share of 49 cents is the
consensus of analysts surveyed by Thomson Reuters, the same figure
as a year earlier.
REVENUE FORECAST: Analysts expect revenue of $8.72 billion,
compared with $10.63 billion a year earlier. The drop reflects the
divestiture of bottling operations.
WHAT TO WATCH:
C-STORE SLOWDOWN: Rival PepsiCo, which reported third-quarter
results earlier this month, reported a drop in North America soda
sales in part because of weak convenience-store sales. Analysts
will be watching to see how the convenience-store trend affects
Coke's North America unit.
ZERO SUGAR: The company rolled out Coke Zero Sugar in the U.S.
during the quarter with a big marketing splash, hoping to offset
the long slide in volumes of diet and regular colas with a new soda
replacing Coke Zero. Nielsen data suggest sales growth slowed in
the quarter in North America, analysts say, though the company has
boosted revenue in the region with smaller packaging and a shift to
profit-sharing with bottlers.
NORTH AMERICA CHIEF: Analysts will also be listening for more
details on the mandate CEO James Quincey has given Jim Dinkins, who
on Monday was named as the next North America chief. Mr. Dinkins,
who as head of Coke's Minute Maid unit has overseen an expanding
portfolio of juices, chilled tea and other beverages, says he'll
work to empower staff to "test new ideas and put them into action
quickly."
BOTTLING: Coke is divesting from its U.S. bottling operations,
with a self-imposed deadline to complete the reorganization by
year's end. Analysts will be looking to see to what extent the move
to an asset-light model will benefit the company's operating
margins.
(END) Dow Jones Newswires
October 24, 2017 08:14 ET (12:14 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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