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

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


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

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