The Coca Cola Company (NYSE:KO) and Johnson & Johnson (NYSE:JNJ) reported positive financial results for the third quarter of the current fiscal year on Tuesday.
Coca Cola’s net income in the third quarter was $2.45 billion or $0.54 earnings per share, an increase of 6% from $2.31 billion or $0.50 earnings per share last year. The beverage company said its earnings per share were $0.53 excluding special items, in line with the consensus estimate of analysts based on data compiled by Thomson Reuters.
In terms of revenue, Coca Cola generated $12.03 billion, a decline of 3% compared with its $12.35 billion revenue a year ago, and it is moderately lower than the $12.05 billion consensus estimate. According to the company, its revenue declined due to the costs of restructuring bottling operations restructuring in Brazil and the Philippines as well as weaker-than-expected currencies in emerging markets.
According to Coca Cola CEO Muhtar Kent, the beverage company experienced challenges in emerging markets, but he believes it would be temporary since the middle class in those countries is growing. He added that the Coke brand is resilient and the company delivered 181 billion beverages servings during the third quarter. Furthermore, Kent said Coca Cola will continue to invest in its brands and acquisitions.
On the other hand, Johnson & Johnson generated a net income of $2.98 billion or $1.04 billion earnings per share in the third quarter compared with $2.97 billion or $1.05 earnings per share in the same period a year ago. Excluding special items, the company’s earnings were $1.36 per share, higher than the $1.32 earnings per share consensus estimate of analysts based on data compiled by Thomson Reuters. Its revenue increased by 3.1% to $17.58 billion during the period.
Alex Gorsky, chairman and CEO of Johnson & Johnson said “Our third-quarter results reflect the solid, demonstrable results in achieving our near-term priorities while also advancing our longer term strategic growth drivers. Our key products and successful new product launches delivered strong growth. We continue to progress our pipelines with a number of regulatory approvals, the submission of new drug applications, and execution of strategic collaborations. Our investments further strengthen our ability to deliver sustainable growth and bring meaningful innovations to patients and consumers.”
The shares of Coca Cola gained 0.69% to $37.92 per share while Johnson & Johnson was slightly down at $89.90 a share on Tuesday after hours.