Coca-Cola earnings beat Wall Street estimates as revenue jumps 16%

Finance

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A person wearing a mask pushes a dolly cart past a Coca-Cola truck as the city continues Phase 4 of re-opening following restrictions imposed to slow the spread of coronavirus on September 16, 2020 in New York City.
Alexi Rosenfeld | Getty Images

Coca-Cola is due to report its first-quarter earnings before the bell Monday.

Here’s what Wall Street analysts surveyed by Refinitiv are expecting:

  • Earnings per share: 58 cents expected
  • Revenue: $9.83 billion expected

In February, Coke said it was expecting comparable earnings per share growth of between 5% and 6% in 2022. The company also predicted that higher commodity costs would hit profits by mid-single digits.

Since issuing that forecast, Coke has joined a host of other Western companies in suspending business in Russia after the Kremlin invaded Ukraine. Though, in a regulatory filing, Coke said its business in Ukraine and Russia contributed about 1% to 2% of its consolidated net operating revenue and operating income in 2021, so pulling out of Russia is unlikely to have an outsized impact on its top line.

However, the war has led to higher costs for grains, gas and other commodities, adding to the inflation that consumer companies like Coke were already facing. Investors will be watching to see if shoppers keep buying Coke’s beverages as prices rise.

Last quarter, the company’s unit case volume climbed 9% as consumers drank more Coke products outside of their homes, a strong signal for the company’s pandemic recovery.

Shares of Coke have climbed 19% over the last 12 months, giving it a market value of $283 billion.

This is breaking news. Please check back for updates.

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