Coca-Cola (NYSE: KO) is scheduled to announce Q2 earnings results on Wednesday, July 21st, before the market open.
20 analysts estimate earnings of $0.563 per share compared to earnings of $0.420 per share in the same quarter of the previous year. The consensus EPS estimate is $0.56 (+33.3% Y/Y) and Coca-Cola is expected to report sales of $9.31 billion (+29.2% Y/Y), an increase of 29.3%, and a comparable adjusted gross margin rate of 58.5%. Overall, analysts expect an average profit of $2.18 per share for the current fiscal year, compared to $1.95 per share in the previous year. On average, analysts predict that the company will report annual sales of $36.98 billion.
Its second-quarter results are expected to reflect gains from its efforts to constantly refresh and streamline its brand portfolio. To streamline its portfolio, the company discontinued its energy drink line in North America in May 2021. It has also been maximizing shelf space with new and higher-velocity products to fuel growth. Coca-Cola is highly focused on disciplined resource allocation to cash in on the biggest opportunities while making quick portfolio decisions. The company’s second-quarter performance is expected to have benefited from these efforts. The second-quarter results are expected to reflect gains from accelerated investments to expand digital presence. Coca-Cola is steadily witnessing a splurge in e-commerce, driven by a shift in consumer behavior amid the coronavirus outbreak. The company has been consistently strengthening consumer connections and further piloting various digital-enabled initiatives through fulfillment methods to capture the online demand. Aggressive cost-saving measures across the organization are also expected to have helped cushion operating margin in the second quarter. This is anticipated to have aided the bottom line.
Coca – Cola Long (Buy)
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