- Coca Cola estimates a 1 to 2 cents of hit to its earnings in fiscal first-quarter amidst the Coronavirus crisis.
- Coca-Cola expresses confidence in hitting the targets set for full-year 2020.
- Coca-Cola estimates a 5% annual increase in its revenue in 2020 and a 7% increase in earnings.
In its announcement on Friday, Coca-Cola highlighted that its earnings in the first quarter of 2020 are likely to take a hit due to the recent outbreak of Coronavirus in China. The company forecasts a 2 cents per share of decline in its Q1 earnings.
Apart from a 1 to 2 cents of reduction in quarterly earnings, the company also accentuated that a 2% to 3% hit in unit case volume and 1% to 2% drop in organic revenue can also be expected in the current quarter.
Coca-Cola Is Confident Of Hitting Targets For Full-Year
The global beverage giant, however, said on Friday that despite a grim outlook for the fiscal first quarter, it still expects to hit the targets for full-year that were announced previously in its guidance for 2020. As per the forecast, Coca-Cola anticipated a 5% increase in its organic revenue this year. In terms of adjusted earnings per share, the company sees a 7% gain to $2.25. In fiscal 2019, Coke’s EPS (earnings per share) was reported at $2.07 per share while net sales were accentuated at $37.3 billion.
In premarket trading on Friday, Coca-Cola was seen trading 1% down. The $256 billion company has gained around 30% in the past 12 months.
Addressing to the analysts after the release of Coke’s fourth-quarter performance results, the company’s executives had highlighted that China contributes 10% to its total global volume but accounts for significantly less on profits and revenue’s front. Coca-Cola’s Q1 earnings report is expected to be revealed in April in which the company is expected to give more insight into the impact of the health emergency in China on its financial performance.
Coca-Cola’s Performance In The Stock Market
The global beverage giant also presented in Boca Raton, Florida on Friday at New York’s conference of Consumer Analyst Group.
At the time of writing, Coke is trading at just above $60 per share in the stock market that marks an around 10% gain in 2020 so far. It had opened at $55 in January 2020. Its performance in 2019 was also reported moderately upbeat. The company started the last year at around $47 in January. Following a drop to $45 in March, it surged back up that continued throughout the rest of the year and closed it at $54 per share in December. Closing at $60.13 last Friday, Coca-Cola has printed a record high in the stock market.