Coca-Cola earnings fall 33%, but company sees improving demand as lockdowns ease

Earnings

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Coca-Cola is expected to report its second-quarter earnings before the bell on Tuesday.

Here’s what Wall Street is expecting, based on a survey of analysts by Refinitiv:

  • Earnings per share: 40 cents expected
  • Revenue: $7.18 billion expected

The coronavirus pandemic has weighed on both supply and demand for Coke’s products. About half of the company’s revenue typically comes from consumers drinking at home. To keep up with the shift in demand away from restaurants to home occasions, the company has focused production on its more popular beverages.

Although not directly tied to the pandemic, Coke recently said it is discontinuing its Odwalla juice and smoothie products amid slowing sales and a greater need for efficiency.

CEO James Quincey told CNBC in May that the company was still seeing negative volumes, although demand has recovered some since plunging 25% in April. The Atlanta-based company pulled its 2020 outlook in mid-March as countries around the world shut restaurants, universities and offices to slow the spread of the virus.

Coke announced in late June that it would be pausing all social media advertising for 30 days. The beverage giant did not officially join the July boycott against advertising on Facebook, which was meant to put pressure on the social media company to crack down on hate speech and misinformation.

Shares of Coke have fallen 16% so far this year. The stock has a market value of $198 billion.

This story is developing. Please check back for updates.

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