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The Gory Details of Coca-Cola FEMSA's Earnings Miss

Monday - 3/18/2013, 3:18pm  ET

Coca-Cola FEMSA reported earnings on March 15. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Coca-Cola FEMSA missed estimates on revenues and whiffed on earnings per share.

Compared to the prior-year quarter, revenue expanded. Non-GAAP earnings per share grew significantly. GAAP earnings per share expanded significantly.

Margins grew across the board.

Revenue details
Coca-Cola FEMSA logged revenue of $3.11 billion. The six analysts polled by S&P Capital IQ expected revenue of $3.19 billion on the same basis. GAAP reported sales were 19% higher than the prior-year quarter's $2.68 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $1.66. The two earnings estimates compiled by S&P Capital IQ averaged $1.94 per share. Non-GAAP EPS of $1.66 for Q4 were 28% higher than the prior-year quarter's $1.30 per share. GAAP EPS of $1.67 for Q4 were 36% higher than the prior-year quarter's $1.23 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 47.3%, 170 basis points better than the prior-year quarter. Operating margin was 17.5%, 130 basis points better than the prior-year quarter. Net margin was 10.6%, 180 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $3.03 billion. On the bottom line, the average EPS estimate is $1.10.

Next year's average estimate for revenue is $12.45 billion. The average EPS estimate is $6.16.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 382 members out of 395 rating the stock outperform, and 13 members rating it underperform. Among 107 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 104 give Coca-Cola FEMSA a green thumbs-up, and three give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Coca-Cola FEMSA is underperform, with an average price target of $136.02.

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This article was originally published as The Gory Details of Coca-Cola FEMSA's Earnings Misson Fool.com

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