Coke Blasts Targets

Coke (KO Quote) posted a first quarter that surged past Wall Street's expectations, fueled by revenue growth that came in twice as fast as analysts were predicting.

The Atlanta-based drinks company made $1.26 billion, or 54 cents a share, for the quarter ended March 30, up from the year-ago $1.11 billion, or 47 cents a share. Excluding certain items, latest-quarter earnings were 56 cents a share. Revenue jumped 17% from a year ago to $6.1 billion.

Analysts surveyed by Thomson Financial were looking for a 53-cent profit on sales of $5.63 billion.

"You can track our progress bottle by bottle around the globe," CEO Neville Isdell said. "We grew both sparkling and still beverages while efficiently allocating our resources."

The company showed strong growth internationally but posted an 11% decline in North American operating income, as case volume dropped 3%.

Net revenues for the quarter increased 2%, reflecting a 5% decrease in concentrate sales offset by positive pricing and a mix benefit from strong sales of energy drinks and Powerade. Operating income declined 11% for the quarter, reflecting the lower concentrate sales and higher input costs on the finished goods businesses.

Retail unit case volume decreased 3% in the quarter. Results in the quarter reflected the expected difficult sparkling beverage industry environment and the 28% decline in warehouse-delivered water as the system refocuses resources behind the more profitable Dasani business. The decline in warehouse-delivered water reduced Retail's unit case volume growth rate by 1%.