Big Earnings: The Coca-Cola Company & U.S. Bancorp
The Coca-Cola Company (NYSE:KO) shares are popping up by over 1% in the pre-open session as the world’s largest soft drink maker’s first-quarter profit came above analysts’ estimates driven by strong sales of company’s popular beverages.
The Coca-Cola’s net profit during the latest quarter jumped to $2.05 billion, or 89 cents a share, up from a year ago quarter profit of $1.90 billion, or 82 cents a share, ahead of analysts estimates by 2 cents.
Revenue during the period grew 6% year-over-year to $11.14 billion, well above the Wall Street’s estimates of $10.82 billion. Sales volume surged 5%, with growth across every geographic region.
Both reported and comparable net revenue for the recent quarter grew 6%, helped by a 3% rise in concentrate sales, positive price/mix of 3%, driven mainly by positive pricing, and a 1% positive impact due to structural change.
Shares of Coca-Cola jumped 1.12% to $73.25. The stock has risen over 3.50% so far this year and up 6.50% over the past one year.
U.S. Bancorp (NYSE:USB) shares also climbed 1.06% to $31.49 in the pre-market session after the bank reported better-than-estimated first-quarter profit on improved credit quality at the regional lender.
The company reported net income of $1.3 billion, or 67 cents a share, up from a year ago profit of $1.05 billion, or 52 cents a share, topping analysts’ estimates by 3 cents.
Net interest income – the difference between what the bank earned on loans and paid out on deposits – rose 8% to $2.7 billion in the quarter. Provision for loan losses fell 36 percent to $481 million.
Net charge-offs and nonperforming assets declined on a linked quarter and year-over-year basis. Provision for credit losses was $90 million less than net charge-offs. Net charge-offs fell 8.2% from the fourth quarter of 2011.