3 Things to Watch for in The Coca-Cola Company (KO)’s Earnings

The Coca-Cola Company (NYSE:KO) is set to report earnings before the market opens on Tuesday. Here’s what you need to watch for in the company’s results.

Coca-Cola Earnings ReportTempered expectations
The first issue that needs to be addressed after earnings are released is whether the cola giant met Wall Street’s expectations. Analysts tack profits for Coke at $0.44 per share this quarter . Coca-Cola booked earnings per share of $0.95 in the same quarter last year , so the company is expecting a decline in profit growth. The company reported $12.2 billion in sales for last year’s Q3, and $46.5 billion for the full year .

Sales growth
Third-quarter 2012 net revenues grew 1%, with the company enjoying volume growth across every geographic group . Coca-Cola’s Q3 earnings announcement showcased strong unit case volume growth for key emerging markets — Thailand and India grew at 19% and 15%, respectively . Even though sales outside the U.S. already stand at roughly 80% of Coke’s worldwide volume, the company is aggressively pursuing growth in relatively untapped emerging markets.

For example, Coke possesses only a fraction of the market penetration in India as it has in the U.S. , yet India contains nearly four times as many people . With this Asian nation as one of the last frontiers for cola companies, rivals Coke and PepsiCo, Inc. (NYSE:PEP) are putting out all the stops to gain market share. Coke has historically eaten PepsiCo’s dust in India, but is closing the gap . In the company’s quest to double revenue and volume in a decade , Coke plans to spend $5 billion in India by 2020 .

Product innovation
Coca-Cola’s future success lies in the breadth and depth of its product pipeline. Non-carbonated drinks are growing at a faster rate than carbonated beverages . As consumers become more health and calorie conscious, this trend is expected to continue. Even though Coca-Cola remains heavily dependent on carbonated soft drinks, it’s admirably grown its non-carbonated offerings, most recently by gaining a majority ownership stake in Zico  coconut water. I’ll be looking for reported sales growth in Coke’s non-carbonated drinks.

Foolish bottom line
Soda sales at U.S. stores declined 0.6% in 2012, and December alone accounted for a 2.8% slump in sales . Given that, I’ll especially be watching to see exactly if and how Coca-Cola achieved its fourth-quarter sales growth. I’ll also be looking for Coca-Cola’s reported case volume growth in key emerging markets.

The article 3 Things to Watch for in Coca-Cola’s Earnings originally appeared on Fool.com and is written by Nicole Seghetti.

Fool contributor Nicole Seghetti owns shares of PepsiCo. You can follow her on Twitter @NicoleSeghetti. The Motley Fool recommends Coca-Cola and PepsiCo. The Motley Fool owns shares of PepsiCo.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Dividend Stock Alert - Billionaire Robbins' Top Dividend Idea With 70% Upside Potential

Get Paid 3.5% Per Year While Waiting For The Stock Appreciate 70%

Larry Robbins' Glenview Capital Opportunity Fund returned 101.7% in 2013 and Robbins personally made $750 million. The same fund returned 25.3% in 2014. In this FREE REPORT we will share Robbins' top dividend idea that yields 3.5% and has been increasing its dividends for 39 consecutive years. Robbins thinks the stock has the potential to appreciate 70%.

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Click here to Read Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 74 percentage points in 2.5 years. Our beta is only 1.2 (download a FREE newsletter and see the details inside)

Lists

Best Selling Magazines in the World

Shortest People in History

The Most Celebrated Holidays in the World

Most Expensive Handbag Brands in the World

Top Selling Comic Book Issues of this Century

The Most Powerful Women in Politics

Best Paid DJs

Most Rebellious Female Artists

Best Paid TV Actresses of 2014

Best Paid Actors of 2014

Most Expensive Horses in the World

Tallest People Ever

Most Encouraging Feminist Celebrities

Best Paid Supermodels of 2014

Top 10 Suburbs for Retirement in 2015

10 Wealthiest Cities in America

Top 10 TED Talks for Entrepreneurs

Best TED Talks on Education

25 Most Dangerous Places to Live in America

Top 10 Ski Resorts in the United States – 2014 List

Top 10 Most Remote Places in the World

Most Visited Museums in the United States

Wealthiest Photographers in the World

Most Famous Gay Athletes

The World’s Most Famous Circuses

Best Hair Stylists

Most Popular NASCAR Drivers

The Best Romance Movies of all Time

The Most Wanted Drug Lords

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!