Coca-Cola Q2 Earnings Beat Estimates

by Christopher Freeburn | July 17, 2012 1:24 pm

Coca-Cola (NYSE:KO[1]) announced today that its net income for the second quarter[2] was $2.79 billion, down slightly from $2.80 billion during the same time last year.

The company said revenue for the quarter came in at $13.09 billion, up 3% from $12.98 billion in 2011. Adjusted EPS was $1.22 versus the $1.19 Wall Street had been looking for, Reuters noted.

Shares of Coca-Cola[3] rose more than 1% in Tuesday afternoon trading.

The company noted that a rising U.S. dollar had negatively affected revenue by at least 4% during the current quarter and warned that it would reduce operating income by between 8% and 9% during the current quarter.

The beverage and snack-food maker said increased commodity costs[4] drove a 5% rise in overall expenses. The company noted that soft drink prices had risen by 5% in North America during the quarter, helping to absorb the higher costs.

International sales rose 5% during the second quarter, while sales in North America edged up only 1%. Growth in emerging markets outpaced developed markets, with volume in Eurasia and Africa rising 11% compared to a decline of 4% in Europe.

Last week, Coca-Cola shareholders approved a 2-for-1 stock split, which will double the number of outstanding shares[5] from 2.26 billion to 4.52 billion.

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