Coca-Cola expects coronavirus to lower first-quarter earnings but holds firm to its 2020 forecast

Earnings

Coca-Cola said Friday that the COVID-19 outbreak could drag down its first-quarter earnings by as much as 2 cents.

The global beverage giant is forecasting that the virus will hit its quarterly earnings by 1 cent to 2 cents, unit case volume by 2% to 3% and organic revenue by 1% to 2%.

Despite the hit to its first-quarter financial results, the company still expects to meet its full-year targets. Coke estimates 2020 organic revenue will grow by 5% and adjusted earnings per share will increase by 7% to $2.25. In 2019, the company  reported net sales of $37.3 billion and earnings per share of $2.07.

Shares of the company are down less than 1% in premarket trading. The stock, which has a market value of $256 billion, is up 30% over the last 12 months.

Coke executives told analysts on its fourth-quarter earnings call in late January that China accounts for about 10% of its global volume but less of its profits and revenue. The company expects to provide more information about the outbreak’s impact on its business during its first-quarter earnings call in April.

Coke will be presenting at the Consumer Analyst Group of New York (CAGNY) conference in Boca Raton, Florida, later on Friday morning.

Articles You May Like

Sean Parker and George Soros have given millions to support marijuana legalization
A Navy SEAL explains why you should ‘test your will’ at least once a year
Why South Sea Pearls Are So Expensive | So Expensive | Business Insider
Fermenting: the future of animal-free meat? | FT Tech
All you need to know about caviar

Leave a Reply

Your email address will not be published.