Coca-Cola (KO) Beats Q2 Expectations as Sales Recover in International Markets

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 one of the biggest beverage companies with a major share in the global soft drink market.

The carbonated soft drink maker recently announced strong financial results for the second quarter amid recovering sales in several overseas markets. The company reported earnings of 61 cents per share for the three months ended July 2, compared to 41 cents per share in the year-ago quarter. On an adjusted basis, Coca-Cola earned 68 cents per share, ahead of the consensus forecast of 56 cents per share.

Revenue jumped 42 percent on a year-over-year basis to $10.13 billion, beating analysts’ average estimate of $9.31 billion. The operating margin in the quarter was 29.8 percent, up from 27.7 percent in the comparable period of 2020.

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Commenting on the results, CEO James Quincey said, “Our results in the second quarter show how our business is rebounding faster than the overall economic recovery, led by our accelerated transformation. As a result, we are encouraged and, despite the asynchronous nature of the recovery, we are raising our full year guidance.”

Coca-Cola expects adjusted earnings growth in the range of 13 to 15 percent for the full year, compared to its previous growth outlook between high single digits and low double digits.

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