A shopper scans a crate of Coca-Cola Co. soft drinks at a store in Orem, Utah, USA on Tuesday, February 9, 2021.
George Frey | Bloomberg | Getty Images
Coke is expected to announce the second quarter results before the bell on Wednesday.
Wall Street analysts surveyed by Refinitiv expect the following:
- Earnings per share: 56 cents expected
- Revenue: $ 9.32 billion expected
A year ago, the beverage giant’s profits fell by a third, and quarterly sales saw the largest drop in at least three decades. Analysts are more optimistic about the second quarter of this year, forecasting that both earnings and revenues will return to pre-pandemic levels.
Last quarter, the company reiterated its full year forecast of high single-digit organic revenue growth and high-single-digit to low double-digit adjusted earnings growth. However, inflation has accelerated since then. Beginning of July, PepsiCo Executives said the company sees higher prices for ingredients, labor and freight.
The Delta Covid variant has also raised new concerns in countries with higher vaccination rates such as the USA. Before the pandemic, non-domestic occasions such as going to the cinema or dining out accounted for around half of Coke sales. Those sales have come back, but new restrictions could dampen the recovery.
Coke stock is up nearly 2% this year, giving the company a market value of nearly $ 241 billion.