China Drives Yum and Coke — Tuesday’s IP Market Recap

Hungry and thirsty Chinese boost the two U.S. companies earnings and share prices

   
China Drives Yum and Coke — Tuesday’s IP Market Recap

IPMarketRecap China Drives Yum and Coke    Tuesdays IP Market RecapFood and drink looked good Tuesday, especially from where China’s sitting.

Yum Brands (NYSE:YUM) and Coca-Cola (NYSE:KO) each headed higher Tuesday on strong earnings bolstered by breakneck growth in China.

Yum’s stock saw the bigger windfall of the two, gaining 2.6% Tuesday after reporting late Monday. Yum’s adjusted fourth-quarter earnings of 75 cents per share were up 33% from the year-ago period and just edged analyst estimates. Full-year adjusted EPS of $2.74 were up 15% from 2010. The company was heavily powered by a same-store sales increase of 21% in China, with the same metric up just 1% in the U.S.

Coca-Cola stock was nudged ahead a more modest 0.76% after a strong earnings report Tuesday morning. The company’s fourth-quarter EPS of 79 cents were up 9.7%, and full-year EPS of $3.84 were up 10% — each beat expectations by 2 cents. Coca-Cola announced 5% growth in the Pacific, including 10% growth in China.

Toyota (NYSE:TM) reported a hit to earnings but its shares gained 2.4% on an improved profit forecast for fiscal 2012. The company’s quarterly earnings dropped 13.5% to $1.05 billion, thanks partially to production disruptions caused by heavy Thailand flooding in 2011. However, carmaker boosted its profit forecast from $2.3 billion to $2.6 billion.

BP (NYSE:BP) was down about 0.6% after beating earnings expectations Tuesday. The company’s overall profit of $4.99 billion was up 14% and beat analyst estimates of $4.88 billion.

Three Up

Three Down

  • Silicon Motion Technology (NASDAQ:SIMO): Down 11.8% ($2.54) to $18.96.
  • Alpha Natural Resources (NYSE:ANR): Down 5.2% ($1.23) to $22.31.
  • Green Mountain Coffee (NASDAQ:GMCR): Down 4% ($2.74) to $66.27.

Kyle Woodley is the assistant editor of InvestorPlace.com. As of this writing, he did not hold a position in any of the aforementioned securities. Check out recaps from previous trading days here.


Article printed from InvestorPlace Media, http://investorplace.com/2012/02/china-yum-brands-coca-cola-ko-toyota-tm-bp/.

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