Coca-Cola’s stock surges, after profit beats expectations while revenue falls a bit shy – MarketWatch

Shares of Coca-Cola Inc.
rose 1.8% in premarket trading Tuesday, after the beverage and snack giant reported a second-quarter profit to topped expectations but revenue that fell a bit shy, amid challenges resulting from the coronavirus pandemic. Net income fell to $1.78 billion, or 41 cents a share, from $2.61 billion, or 61 cents a share, in the year-ago period. Excluding non-recurring items, adjusted earnings per share came to 42 cents, above the FactSet consensus of 40 cents. Revenue fell 28% to $7.15 billion, below the FactSet consensus of $7.21 billion. Unit case volume fell 16% from a year ago, but improved from a 25% decline for the month of April to a 10% decline in June. Operating margin decreased to 27.7% from 29.9%, citing pressure on revenue and the negative impact of currency translation. “We believe the second quarter will prove to be the most challenging of the year; however, we still have work to do as we drive our pursuit of ‘Beverages for Life’ and meet evolving consumer needs,” said Chief Executive James Quincey. The stock has dropped 16.7% year to date through Monday, while the Dow Jones Industrial Average
has slipped 6.5%.

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