Coca-Cola tops analysts’ estimates for earnings and revenue in the first quarter

The Coca-Cola Company (NYSE: KO) released its quarterly financial results on Tuesday that topped the analysts’ estimates for earnings and revenue in the first quarter. According to the beverage company, however, it is taking a significant hit amidst the Coronavirus pandemic that has pushed restaurants, stadiums, and theatres from across the globe into temporarily shutting down. The company said that the impact of COVID-19 on its financial performance will be evident in the second quarter.

In terms of global volumes, the company added, it has seen a massive 25% decline in April alone. Coca-Cola jumped roughly 1.7% in premarket trading on Tuesday.  

Coca-Cola’s Financial Results Versus Analysts’ Estimates

According to Refinitiv, analysts had expected the company to record £6.72 billion in revenue in the first quarter. In terms of earnings per share (EPS), their estimate was capped at 36 pence per share. In its financial report on Tuesday, however, Coca Cola boasted a significantly higher £6.98 billion in quarterly revenue as it made 41 pence of earnings per share (adjusted) in the recent quarter.

At £6.98 billion, Coca-Cola’s net sales marked a 1% decline.

Owing to the rising uncertainty due to the Coronavirus pandemic, the beverage company added, it is difficult to provide meaningful full-year guidance at the moment. The company withdrew its financial guidance for 2020 in March.

Originally, Coca-Cola has estimated a 5% growth in organic revenue this year and a 7% increase in adjusted EPS to £1.83 per share. According to the company:

“The ultimate impact of the second quarter and full-year 2020 is unknown at this time, as it will depend heavily on the duration of social distancing and shelter-in-place mandates, as well as the substance and pace of macroeconomic recovery. However, the impact to the second quarter will be material.”

Coca-Cola Records £2.26 Billion In Net Income In Q1

At £2.26 billion, Coca-Cola’s net income in the first quarter was sharply higher than £1.36 billion in the same quarter last year.

At the time of writing, Coca-Cola is exchanging hands at £38 per share in the stock market that marks an around 15% decline in 2020 so far. The stock dropped to as low as £30 per share in late March. In February, however, the company hit a record-high of £49 per share.

In 2019, Coca-Cola performed fairly upbeat with an annual gain of a little under 20%. It is currently valued at £162 billion and has a price to earnings ratio of 22.50.