Coca-Cola earnings beat estimates as demand for drinks away from home tops pre-pandemic levels
Coca-Cola on Thursday reported quarterly earnings and revenue that beat analysts’ expectations as consumers drank more away from home, topping pre-pandemic levels for the first time.
But the company issued a weaker-than-expected outlook, predicting that higher inflation would continue to weigh on its earnings throughout 2022. Rival PepsiCo similarly warned investors about rising costs for packaging and transportation.
Shares of Coke rose more than 1% in premarket trading.
Here’s what the company reported for the quarter ended Dec. 31 compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:
Earnings per share: 45 cents adjusted vs. 41 cents expected
Revenue: $9.46 billion vs. $8.96 billion expected
The beverage giant reported fourth-quarter net income of $2.41 billion, or 56 cents per share, up from $1.46 billion, or 34 cents per share, a year earlier.
Excluding items, Coke earned 45 cents per share, beating the 41 cents per share expected by analysts surveyed by Refinitiv.
Net salesrose 10% to $9.46 billion, topping expectations of $8.96 billion. The quarter’s revenue was impacted by six fewer days than the prior year and the timing of concentrate shipments, according to the company.
Organic revenue, which strips out the impact of acquisitions and divestitures, jumped 9% in the quarter.
For 2022, Coke is expecting comparable earnings per share growth of 5% to 6%, while Wall Street analysts were forecasting 6.1% growth. It expects higher commodity costs to hit earnings by mid-single digits. The company is also predicting organic revenue growth of 7% to 8% for the full year.
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