A KO From Coke

Updated from 8:00 a.m. EST on Feb. 13.

Before the bell on Wednesday, Coca-Cola (KO - commentary - Cramer's Take) reported impressive fourth-quarter revenue of $7.33 billion, and earnings of 52 cents per share, or 58 cents per share excluding one-time items. Expectations were for revenue of $7.01 billion and 55 cents per share in earnings. Much like last quarter, when revenue rose 19%, this quarter represented an increase of 24% over the same period a year earlier.

As I noted in my preview, those looking to pick up some Coke now, and certainly those who hold it currently, are aware that this is not your father's Coca-Cola but an improved, refreshed version that has high international exposure and a diversified product line. As seen in the numbers both in the past quarter and ones previous to it, the wide reach of the company has benefited Coke greatly during the economic slowdown in the U.S. and provided necessary insulation from the fickle nature of the consumer, who now is starting to favor healthy alternatives vs. traditional carbonated beverages.

This trend continues to emerge in the breakdown of the numbers, where total carbonated beverage consumption increased by only 4% over the period, while the energy drinks, waters, etc. gained 12%; they gained 4% and 11%, respectively, the quarter prior.

To this end, comments on the conference call were quick to highlight weakness in the U.S. being offset by revenue growth internationally (see my comments about high profit ratios outside the U.S. in the preview of the call) and realized benefits from a weakening U.S. dollar. Additionally, case volume, which is a measurement of essentially how much product the company has sold to customers, rose in the U.S. by 1%; global volume gained 5%. The international market sales will continue to be the main source of growth for the company going forward.

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At the time of publication, Martin was long Coca-Cola.