Coca-Cola Q2 earnings are due with stock up 19% this year
Coca-Cola reports Tuesday before the open, with Wall Street expecting 93 cents in EPS and $13.16 billion in revenue.
By Theo Nakamura · Staff Writer
· 3 min read
Coca-Cola Q2 earnings are due before the market opens Tuesday, giving investors a fresh read on whether the beverage giant can keep outperforming in a choppy consumer market. The stock has risen more than 19% this year, ahead of the S&P 500’s 8% gain, so expectations are already doing some work.
Wall Street analysts expect Coca-Cola to report earnings per share of 93 cents on revenue of $13.16 billion. Earnings per share, or EPS, is a company’s profit divided across its shares, and investors use it to compare performance over time and against analyst expectations.
What are Coca-Cola Q2 earnings expectations?
Analysts are looking for Coca-Cola to post 93 cents in EPS and $13.16 billion in revenue for the second quarter. The report is scheduled for before Tuesday’s opening bell, which means the numbers could shape early trading in Coca-Cola shares.
The setup is different from some other consumer companies because Coca-Cola has said demand has stayed strong so far this year. The company has benefited from higher-income shoppers who have been willing to pay more for premium products, even as economic uncertainty and market volatility remain in the background.
That strength stands out next to PepsiCo, Coca-Cola’s major rival. PepsiCo said earlier this month that North American beverage volume fell 4% in the second quarter. Volume measures the amount of product sold, so a decline can signal softer demand even when pricing helps revenue.
For the full year, Coca-Cola has projected comparable EPS growth of 8% to 9% and organic revenue growth of 4% to 5%. Comparable EPS adjusts reported profit to make results easier to compare across periods. Organic revenue strips out items such as currency effects and acquisitions, giving investors a cleaner view of growth from the company’s existing business.
What happened with Fairlife?
Coca-Cola disclosed on July 17 that a ransomware attack had targeted Fairlife, its billion-dollar dairy brand known for high-protein products. Ransomware is a cyberattack in which hackers lock or disrupt systems and demand payment, though Coca-Cola did not provide details beyond the disclosure described in the report.
The company temporarily halted production after the attack. Coca-Cola said Monday that it had restarted most operations, and it said the pause is not expected to materially affect its financial condition or operations.
Investors will still be watching for any update on Fairlife because the brand sits in a popular area of the beverage and dairy market: protein-focused products. Coca-Cola’s comments so far suggest the disruption is contained, but the earnings call may give investors more context on operations.
Coca-Cola enters the report with a market capitalization of nearly $360 billion. That size makes the company a major consumer-staples holding and a useful read on how shoppers are behaving across price points, especially as investors compare steady brand demand with pressure elsewhere in packaged food and drinks.
This story draws on original reporting from CNBC.
