Coca-Cola (KO) is the largest soft drink company in the world. Coca-Cola is also an international company that has one of the best known brand names in the world. “The company generates70% of its revenue and about 80% of its operating profit from outside the United States.” The company has a market cap of $174 billion and in 2011 brought in revenues of $46 billion. The price to earnings ratio is 20.5, and the price to book ratio is 5.3.
In mid-April, Coca-Cola reported first quarter earnings. The company had first quarter earnings per share of $0.89 which beat consensus analyst estimates of $0.87. First quarter revenues were $11.13 billion, which was a 5.8% increase from revenues of $10.5 billion in the first quarter of 2011. First quarter net income was $8.57 billion, which was a 7.8% increase from net income of $1.9 billion in the first quarter of 2011. Investors were encouraged by the first quarter earnings report and the “Shares rose 2.6% to 74.35 just after midday intraday, the stock hit its best level since July 1998.”
Coca-Cola’s “Worldwide volume grew 5% on the quarter and volume grew in all key markets including a 2% rise in North America and a 20% rise in India. Developing nations saw the largest increase in volume with volume in China increasing 9% and in Brazil 4%.” Coca-Cola’s increased earnings reflected higher sales volumes and a 3% price increase.
After the first quarter earnings were announced Coca-Cola’s CEO Muhtar Kent said “Our first quarter results underscore Coca-Cola’s resilience and a long-term focus on quality growth in every region of the world.To continue reading, click here.
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