Shares for the Coca-Cola Company (NYSE:KO) rose as much as 2 percent in early stock market trading Tuesday, as the Dow 30 component firm reported a Fourth Quarter and Full Year 2011 Earnings increase of 10 percent.
At 11:30am Eastern Time Tuesday, Coca-Cola shares were trading at $69.07 – up 1.5% from Monday’s closing price of $68.03. The Dow Jones Industrial Average index (DJIA) had improved 0.25% to 12,878.80 approaching midday Tuesday.
Full Year Earnings Per Share came in at $3.84 in 2011 (compared to $3.69 in 2010) while Fourth Quarter EPS was reported at $0.79 (compared to $0.72 for 4Q 2010).
CEO Statement
Coca-Cola Chairman and CEO Muhtar Kent told investors Tuesday, “The Coca-Cola Company continues its momentum toward realizing our 2020 Vision, with stronger brands, clear strategies and well-focused execution to drive further growth. We once again achieved financial results for both the year and the quarter in line with, or ahead of, our long-term targets, with quarterly volume and revenue growth in every one of our five geographic operating groups. Importantly, we also continued to increase our global volume and value share in 2011.”
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Kent added, “Even as we believe that global market volatility will continue in the near term, the breadth of our global footprint and the strength of our brands create a resilient business that was built for times like these. As we enter into the third year of our 2020 Vision, our Roadmap for Winning Together remains clear. The assumptions that shaped our 2020 Vision have not changed. Our expectations for long-term, sustainable and balanced growth across emerging and developed markets have not wavered. And we will continue to make significant investments in our future all around the world to support the tremendous opportunity we see in nonalcoholic ready-to-drink beverages, one of the fastest growing segments in consumer packaged goods.”
The CEO parted with, “Our solid performance reflects the continued investments we have made over time and in every economic condition to strengthen the health of our brands, starting with brand Coca-Cola, the very oxygen of our business. With our well-aligned global bottling system, world-class brands, strong financial discipline and a clear roadmap for growth, we are confident that we will achieve our long-term growth targets and continue to deliver increasing shareowner value.”
Year To Date Stock Performance
Despite today’s market value gain, Coca-Cola remains one of 7 Dow component stocks that are in negative territory for 2012 (Verizon Communications Inc., Procter & Gamble Co. and Pfizer Inc. are the 3 worst-performing Dow component stocks so far this year). Since opening January at $69.97 the stock has fallen slightly despite the broad-based market rally.
Below are the Intraday and Year To Date stock charts for Coca-Cola Company along with today’s Dow Jones chart.



Rising Commodity Prices
Rising costs in commodities could play a major factor in increased product prices in 2012 and beyond, especially if transportation and plastics expenses continue to surge. If oil prices rise this year in reaction to potential U.S. sanctions on Iran or Iran’s closing of the Strait of Hormuz, beverage companies such as Coca-Cola would likely pass on the increase to customers at Points of Sale.
Coca-Cola and Your IRA
If your IRA is invested in Coca-Cola (KO) stock, then you are happy to hear about Tuesday’s positive earnings report yet disappointed with the overall Year To Date market value performance.
Before making any investment decision, it could be a good idea to consult a Certified Financial Planner who can assist you with determining your short-term and long-term individual needs. IRA.com has a unique tool that allows you to Find an Advisor in your area.
Once you’re ready to begin saving for retirement, you can Open an IRA through us for as little as $1 in a matter of 5 minutes. You can also check out our sections on the IRA Rules and IRA Basics to find out more.












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