by Kyle Woodley | February 7, 2012 4:58 pm
[1]Food and drink looked good Tuesday, especially from where China’s sitting.
Yum Brands (NYSE:YUM[2]) and Coca-Cola (NYSE:KO[3]) 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[4]) 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[5]) 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.
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[13].
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