Beverage firm Coca-Cola (KO) announced that its third-quarter earnings came in better than the consensus estimate. For the quarter, Coke brought in 88 cents per share ($2.06 billion), or 92 cents per share excluding items. The consensus estimate called for earnings of 89 cents per share.

Turning to revenue, Coke saw a 5% increase to $8.43 billion. The company noted that its integration efforts are "well on track," stressing its savings target of at least $350 million per year. These savings will be implemented during the next four years.

Continue reading Coca-Cola's Q3 Earnings Top Estimates

Coca-Cola's Q3 Earnings Top Estimates originally appeared on BloggingStocks on Tue, 19 Oct 2010 11:00:00 EST. Please see our terms for use of feeds.

Continue reading Avoid Jamba After Q1 Report?

Avoid Jamba After Q1 Report? originally appeared on BloggingStocks on Thu, 27 May 2010 10:00:00 EST. Please see our terms for use of feeds.

Sales increased over 4%. Earnings jumped to 90 cents per share from 46 cents per share in the comparable frame. According to BusinessWeek.com, this figure was equal to what analysts were projecting.

Continue reading PepsiCo Comes Through Again in Q4

PepsiCo Comes Through Again in Q4 originally appeared on BloggingStocks on Fri, 12 Feb 2010 14:40:00 EST. Please see our terms for use of feeds.

Pepsi Bottling Group (PBG) issued Q4 results on Tuesday. On a reported basis, the company made 40 cents per share. Last year at this time, there was a loss of $1.28 per share. In addition to that good news, Earnings.com says that expectations hovered around 43 cents per share, a figure much less than the adjusted stat of 59 cents.

Unfortunately, the top line didn't budge, and total worldwide physical case volume for the full fiscal year was worse by 3%. The latter metric is key to a beverage business, and in some ways, ultimately more important than net income. And in terms of cash from operations, there wasn't much going on. For the twelve-month period, money generation was slightly down.

Continue reading Pepsi Bottling Group's Q4: Biding Time Before Merger

Pepsi Bottling Group's Q4: Biding Time Before Merger originally appeared on BloggingStocks on Wed, 03 Feb 2010 16:20:00 EST. Please see our terms for use of feeds.

Net revenue decreased 1.5%. Earnings per share on an adjusted basis increased 2% to $1.08. This bottom-line result is representative of a nice beat against the analysts. They were projecting $1.02 per share for profit, according to Elizabeth Harrow's preview of the quarter.

Continue reading PepsiCo increases adjusted profit, beats the analysts in Q3

PepsiCo increases adjusted profit, beats the analysts in Q3 originally appeared on BloggingStocks on Thu, 08 Oct 2009 15:40:00 EST. Please see our terms for use of feeds.

Besides raising money, what would be the justification behind such a governmental strategy? Well, excess sugar consumption can be dangerous. It can lead to all kinds of complications. You know the drill: obesity, diabetes, etc. When health issues like those rise, the cost of health care increases as well.

Continue reading Please don't tax Coke!

Please don't tax Coke! originally appeared on BloggingStocks on Thu, 10 Sep 2009 14:40:00 EST. Please see our terms for use of feeds.

Brown-Forman (NYSE: BF.B), the maker of alcohol products such as Jack Daniel's and Southern Comfort, is drunk on success today. The B shares of the company were up well over 8% at the time of this writing in afternoon trading, on good volume. The first-quarter earnings served as the catalyst.

Net sales unfortunately decreased 7%, but earnings per share on an adjusted basis (taking into account a charge in the year-ago period) expanded by 17% to 81 cents. According to Earnings.com, that number came in way ahead of estimates of 62 cents per share.

Continue reading Brown-Forman intoxicated on its Q1 results

Brown-Forman intoxicated on its Q1 results originally appeared on BloggingStocks on Wed, 02 Sep 2009 17:30:00 EST. Please see our terms for use of feeds.

Coca-Cola Co. (NYSE: KO), the beverage giant with the world's most valuable brand according to BusinessWeek, reported earnings before the market opened today. Earnings per share for the second quarter of 2009 were $0.92 after items on $8.27 billion in revenue, compared to the $0.89 average EPS expected from analysts. The consensus revenue target was $8.66 billion, meaning that Coke missed on the top line even though global unit case volume increased 4%, driven by a 33% increase in India and a 14% increase in China. The company said they increased market share for the eighth consecutive quarter.

Shares fell slightly more than 1% in early trading, after rising yesterday.

Continue reading Coca-Cola earnings down, but developing markets a bright spot

Coca-Cola earnings down, but developing markets a bright spot originally appeared on BloggingStocks on Tue, 21 Jul 2009 13:20:00 EST. Please see our terms for use of feeds.

Coca-Cola (NYSE: KO), the main thorn in PepsiCo's (NYSE: PEP) side, will report earnings for the second quarter on Tuesday July 21. Don't expect any profit growth, however. According to Earnings.com, Coke made $1.01 per share in the year-ago period. Analysts believe that the beverage maker will only deliver 89 cents per share tomorrow. That's a pretty steep drop.

But those who own Coke very often hold Coke for the long term, so any earnings release is looked at in a specific context: so long as nothing seems too out of the ordinary with the numbers, the original thesis for buying will be considered intact, and no action will be necessary. In fact, if the market wants to sell Coke off for one reason or another, then it can mean that a buying opportunity has been gifted to those who are indeed keeping shares for a while.

Continue reading Coca-Cola's Q2 report: Will the beverage giant beat expectations?

Coca-Cola's Q2 report: Will the beverage giant beat expectations? originally appeared on BloggingStocks on Mon, 20 Jul 2009 16:15:00 EST. Please see our terms for use of feeds.

As can be seen, if Stifel Nicolaus turns out to be right, then traders might have a winning transaction on their hands. But one thing that must be remembered is the arbitrage game going on here. Pepsi wants to buy Pepsi Bottling Group. The latter is, of course, arguing for a higher purchase price.

Continue reading PepsiCo's upgrade -- should you buy?

PepsiCo's upgrade -- should you buy? originally appeared on BloggingStocks on Mon, 29 Jun 2009 14:10:00 EST. Please see our terms for use of feeds.

Dr Pepper Snapple Group (NYSE: DPS) popped open its first-quarter report on Wednesday (I bet you never read that pun before from a financial pundit covering a beverage concern!). On an adjusted basis, sales rose 4%. Management needed to adjust for the termination of a contract with Hansen (NASDAQ: HANS), as well as for currency effects. The company saw a drop in bottom-line income excluding items as earnings came in at $0.37 per share. This was $0.03 less than last year's performance.

However, Dr Pepper can feel happy about the fact that the company beat expectations. The market was only looking for $0.29 per share. How refreshing (yep, another pun)! Volumes did all right during the quarter.

Continue reading Dr Pepper beats the analysts in Q1

Dr Pepper beats the analysts in Q1 originally appeared on BloggingStocks on Thu, 14 May 2009 18:00:00 EST. Please see our terms for use of feeds.

Coca-Cola (NYSE: KO) reported first-quarter earnings on Tuesday morning. By the end of the day, the main enemy of PepsiCo (NYSE: PEP) was down 2.8% on better-than-average volume. Coke said that it earned 65 cents per share on an adjusted basis. According to Beth Gaston Moon's earnings preview, management met Wall Street's expectations.

So, right off the bat, you can see why the market wasn't so kind to Coke's shares. Meeting expectations isn't enough sometimes. But there are some other issues here, too.

Revenue was kind of soft, and a look at the statement of cash flows shows a decrease in money generated from operations. That number decreased over 20% to roughly $870 million.

Continue reading Coca-Cola's Q1 was only okay, but company is still a refreshing core holding

Coca-Cola's Q1 was only okay, but company is still a refreshing core holding originally appeared on BloggingStocks on Wed, 22 Apr 2009 08:30:00 EST. Please see our terms for use of feeds.

Continue reading Coca-Cola (KO) has better than expected fourth quarter

Coca-Cola (KO) has better than expected fourth quarter originally appeared on BloggingStocks on Thu, 12 Feb 2009 10:40:00 EST. Please see our terms for use of feeds.

Coca-Cola (NYSE: KO), the arch rival of PepsiCo (NYSE: PEP), is set to report Q4 numbers on Thursday, February 12. Coke is estimated to earn 61 cents per share, a growth of about 5%. Is it doable? More importantly, will Coke be able to beat projections? I'd say it might, considering that the two major bottlers out there, Pepsi Bottling Group (NYSE: PBG) and Coca-Cola Enterprises (NYSE: CCE), both beat on their respective bottom lines this week. Pepsi Bottling trounced expectations by 5 cents, and Coke's bottler did better by 3 cents.

Not that the quarter will have been a cake walk. There will be issues with currency translations and the global slowdown. Even though Coke sells products that are theoretically defensive against a recession, I imagine that guidance will be conservative, and I would bet that growth in case volume, a very important metric for beverage companies, will be down. I'll hope for the best, but I'm bracing myself for that outcome.

Continue reading Earnings preview: Will Coca-Cola's Q4 bubble to the top?

Earnings preview: Will Coca-Cola's Q4 bubble to the top? originally appeared on BloggingStocks on Wed, 11 Feb 2009 17:30:00 EST. Please see our terms for use of feeds.

Continue reading Pepsi Bottling Group beats in Q4, is it a value?

Pepsi Bottling Group beats in Q4, is it a value? originally appeared on BloggingStocks on Tue, 10 Feb 2009 15:30:00 EST. Please see our terms for use of feeds.

Don't you just hate it when one of the companies in your portfolio finds itself the subject of litigation? Especially when it's a lawsuit not so much for money but to generate a little bad publicity? I know, lawsuits are part of the game of any business. They are nothing more than another cost on the income statement. But I hate it when it has to do with an acquisition that is still young. I'm talking about Coca-Cola (NYSE: KO) and a lawsuit brought against its VitaminWater asset.

According to this source, The Center for Science in the Public Interest doesn't like the way that Coke publicizes the health benefits of VitaminWater and is suing to make its point.

Words on the label of the bottles of the product irk the group, words like "defense" and "rescue." For those who have never ingested one of these drinks, these are the names of the drinks and are supposed to help consumers know which beverage to use in case you are feeling sick, or are feeling fatigued, etc.

Continue reading Is Coke's VitaminWater healthy enough to fend off a lawsuit?

Is Coke's VitaminWater healthy enough to fend off a lawsuit? originally appeared on BloggingStocks on Thu, 15 Jan 2009 15:20:00 EST. Please see our terms for use of feeds.

When you think about it, corporations are no different than consumers. They see the economic writing on the wall, and they react to it accordingly. So it was no surprise when PepsiCo's (NYSE: PEP) CEO Indra Nooyi said she was down on beverage acquisitions in North America. Instead, she'd like to drive profits in an organic fashion. In my opinion, she's basically saying that she doesn't feel that the economy has hit a bottom yet and that she's got time to look around for prospects to add to her company's portfolio.

I think she's probably correct (if she actually is thinking along those lines), but I would add that, if a particularly compelling prospect came along, I wouldn't necessarily reject it in knee-jerk fashion just because the economy is one scary beast. Remember that PepsiCo, or any company for that matter, can buy other businesses for cheap valuations at the moment. Of course, those other businesses know that, and probably are holding off from putting themselves up on the block. So I do realize that being a value buyer in this climate is more complex than it appears to be at first glance.

She's also on the right track in terms of concentrating on growing internally. I don't think companies focus as much as they should on internal growth. As Nooyi pointed out, organic innovation can indeed be the more attractive economic alternative to pricey buyouts.

Continue reading PepsiCo, like the consumer, is cautious about buying things

PepsiCo, like the consumer, is cautious about buying things originally appeared on BloggingStocks on Tue, 16 Dec 2008 11:32:00 EST. Please see our terms for use of feeds.

Coca-Cola Enterprises (NYSE: CCE), the big bottler for Coca-Cola (NYSE: KO), and a competitor of both PepsiCo (NYSE: PEP) and Pepsi Bottling Group (NYSE: PBG), is trying, like every company out there, to grapple with the recession. Sure, sodas and waters might seem like an attractive business to be in since people will still buy them in a down economy, but make no mistake about it -- Coca-Cola Enterprises needs to be on top of its game to protect those margins.

This leads me to this: According to Beverage World, Coca-Cola Enterprises wants a little more efficiency in its system. What corporate structure doesn't, right? So, management is taking a fresh look at the supply chain and the packaging it uses. Already, the company has shed 1,000 jobs and combined some units. Becoming leaner and working in a smarter fashion is key to keeping the bottom line steady and, hopefully, growing. It's only part of the picture, though. The logistics of distribution should be looked at, don't get me wrong. That obviously is the bottler's main function. Marketing, however, has to be stepped up as well. And that's Coca-Cola's job.

Continue reading Coca-Cola Enterprises needs efficiency -- and better marketing

Coca-Cola Enterprises needs efficiency -- and better marketing originally appeared on BloggingStocks on Sat, 13 Dec 2008 17:40:00 EST. Please see our terms for use of feeds.

Pepsi Bottling Group (NYSE: PBG), a competitive colleague of Coca-Cola Enterprises (NYSE: CCE), reported earnings for the third quarter earlier in the week. I didn't find the release too exciting, to be honest. Revenues went up 2% to $3.8 billion. Earnings came in at $1.06 per share. In last year's quarter, Pepsi Bottling Group booked a bottom line equal to 98 cents per share, after adjustments. In terms of expectations, the company beat the analysts on Wall Street by two pennies better.

While an earnings beat is certainly a nice thing, let's take a look at what is perhaps one of the more important metrics when it comes to beverage manufacturers: case volume. I'm afraid there's nothing to write home about as far as this statistic is concerned. Case volume took a dive around the globe by a disappointing 6%. Management cited hard economic times as a contributing factor. Imagine that. You'd think that products found in the portfolios of Coca-Cola (NYSE: KO) and PepsiCo (NYSE: PEP) would be pretty defensive in a tough economic period. Apparently, Pepsi Bottling Group found it difficult to distribute more of its drinks this past quarter.

Long term, I think Pepsi Bottling Group will be okay. But I think both PepsiCo and Coke need to find better ways of convincing people to continue to drink their flagship carbonated beverages. They've been on the decline over the past several years. As a stock, Pepsi Bottling Group isn't on my watch list. I already own shares of Coke, but even with that bias, I can honestly say that I wouldn't want to enter the bottler at this time. I'm not impressed with either the growth or the year-to-date stock performance.

Disclosure: I own Coke; positions can change at any time.

Pepsi Bottling Group's Q3 doesn't make me a buyer originally appeared on BloggingStocks on Thu, 02 Oct 2008 11:45:00 EST. Please see our terms for use of feeds.

I don't think I'll ever own a bottling group over a Coca-Cola (NYSE: KO) or a PepsiCo (NYSE: PEP). The cash-flow and margin scenarios with the sellers of concentrate is a much better long-term story. With that bias stated, let me check out Pepsi Bottling Group's (NYSE: PBG) first-quarter results, which were reported on Wednesday.

Net sales expanded by 7% to $2.7 billion. On a reported basis, earnings per share didn't budge whatsoever -- it was 12 cents this year, and it was 12 cents last year. On an adjusted basis, earnings were 13 cents -- hey, a penny is a penny, I guess. In fact, I see that Briefing.com is reporting that Pepsi Bottling Group beat the Street's outlook by a penny. Talk about symmetry. Operational cash flow was flat, coming in at $20 million, which was a million bucks less than the operational cash flow seen in the previous year's comparable quarter (by the way, I know that the pun "flat" has been used way too many times when talking about a beverage concern). As can be seen, the bottler lost the growth game this time around. It's only the first quarter, though, so we'll have to wait and see how the rest of the year shapes up. Right now, the company expects earnings of $2.30 to $2.38 on an adjusted basis.

Now, I don't hate Pepsi Bottling Group or anything like that (well, except for the fact that it distributes products that compete with my beloved Coca-Cola company, shares of which I own); it's a respectable company linked to a powerful beverage brand, and it has been pretty good on the dividend-increasing front (it recently upped its quarterly payout by over 20%). But I've always been prone to PepsiCo and Coke since they don't have to deal with the capital requirements for distribution; instead, they are the big marketers supporting the bottlers. If you want exposure to sugar water, I figure you may want to check out those two businesses first.

Disclosure: I own shares of Coca-Cola; positions can change at any time.

Pepsi Bottling Group's Q1 doesn't taste too growthy originally appeared on BloggingStocks on Thu, 24 Apr 2008 08:46:00 EST. Please see our terms for use of feeds.