Coca-Cola’s out-of-home sales have exceeded pre-pandemic levels, and stocks are rising
After a report for the holiday quarter, The Coca-Cola Company (KO) shares rose today, showing revenue and profit from sales above Wall Street estimates. Coca-Cola’s forecast for 2022 is slightly below expectations, but analysts point to the strength of the company’s business.
The world leader in beverage sales, Coca-Cola, today announced the financial results of the 4th quarter and the whole of 2021 before trading.
Coca-Cola shares, up 23% 12 months and 3% since the beginning of 2022, are up 1.74% in trading at writing. Trading signals and forecasts for Coca-Cola shares.
Coca-Cola report compared to forecasts.Q4 earnings were $0.45 per share, beating estimates of $0.41.Total sales revenue rose 10% to $9.5 billion, exceeding expectations of $8.9 billion. Quarterly revenue and profit statistics on the Coca-Cola reports page.
Sales of Coca-Cola beverages are the largest and most profitable segment of the company.
Sales of carbonated soft drinks increased by 8% in the quarter; food, juices, dairy products, and plant-based beverages increased by 11%; and the segment of sports drinks, coffee, and tea grew by 12%.
Annual profit was $2.32 per share on revenue of $38.7 billion, surpassing the expected yield of $2.29 per share on revenue of $38.1 billion.
The annual revenue growth by a 9% increase in concentrate sales and a 6% increase in price/assortment, the company said in a statement. On average, product prices for the holiday quarter increased by 10%. However, the margin level in 2021 was 28.7% compared to 29.6% in 2020 due to increased investment in marketing, the company said in a press release.
In 2022, Coke expects revenue growth of 7% to 8% and expects comparable earnings per share growth of 5% to 6%, while Wall Street analysts predicted growth of 6.1%. However, Coca-Cola warned that currency exchange rates and rising commodity prices could affect earnings results next year.
Wells Fargo analyst Chris Carey believes that the current sales dynamics of Coca-Cola may continue and confirm his rating of the stock “Above the Market.”
Analyst Garrett Nelson of CFRA also repeated the opinion about the “Buy” rating of Coca-Cola shares while raising the target price from $68 to $70.Coca-Cola’s rival PepsiCo (PEP) also reported results today, above expectations, with quarterly earnings of $1.53 per share and total revenue of $25.25 billion, thanks to a big jump in sales of the Frito Lay snack division.
