Coca-Cola (KO) 2021 Q1 Financial Results Preview

Coca-Cola Co. (NYSE:KO)’s history dates back to 1886 when pharmacist John Pemberton made Coca-Cola syrup in his backyard. The company’s accountant Frank Robinson named the beverage “Coca Cola” believing that it would look good in advertisements. During the initial years, the company used coupons to promote the drink. Over the years, Coca-Cola became increasingly popular around the world, mainly due to aggressive advertisement and unique taste. Today, it is a leading international beverage company, with a hefty share in the global soft drink market.

The Georgia-based beverage giant recently announced better-than-expected financial results for the first quarter. Coca-Cola reported earnings of $2.25 billion, or 52 cents per share for the three months ended April 2, slightly below $2.78 billion, or 64 cents per share in the comparable period of 2020. On an adjusted basis, the company earned 55 cents per share, surpassing the consensus forecast of 50 cents per share.

Revenue for the quarter came in at $9 billion, down 5 percent from $8.60 billion in the year-ago quarter. Analysts on average were expecting Coca-Cola to report revenue of $8.68 billion. The operating margin in the quarter was 30.2 percent, as compared to 27.7 percent in the same period of 2020.

Speaking on the results, CEO James Quincey said in a statement, “We are encouraged by improvements in our business, especially in markets where vaccine availability is increasing and economies are opening up, and we remain confident in our full year guidance.”

Coca-Cola also issued its earnings guidance for 2021. The company expects its earnings to grow in the range of high-single digits to low-double digits. Comparatively, analysts on average were looking for EPS growth of 10 percent for the year.