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Coca-Cola’s 2Q17 Results Beat Market Expectations

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Dec. 4 2020, Updated 10:53 a.m. ET

Coca-Cola stock up

Coca-Cola’s (KO) stock price was up 1.1% to $45.74 on July 26 in reaction to the company’s 2Q17 results. The soda giant beat analysts’ revenue and earnings expectations for 2Q17. The company also raised its adjusted EPS (earnings per share) guidance for full-year 2017 with the expectation of a slight improvement in the currency environment in the second half of this year.

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YTD performance

Coca-Cola’s stock has risen 10.3% on a YTD basis as of July 26. The stock prices of nonalcoholic beverage peers PepsiCo (PEP), Dr Pepper Snapple (DPS), and Monster Beverage (MNST) have risen 12.0%, 1.6%, and 20.8%, respectively, on a YTD basis. In comparison, the S&P 500 Index (SPX) is up 10.7% since the start of this year.

Coca-Cola’s stock has outperformed the Consumer Staples Select Sector SPDR Fund (XLP) on a YTD basis. The XLP ETF, which has 9.5% exposure to Coca-Cola’s stock, has risen 6.9% on a YTD basis.

More on 2Q17 results

Coca-Cola surpassed Wall Street estimates in 2Q17. However, both the company’s revenue and earnings continued to decline on a year-over-year basis in 2Q17. In particular, the company’s revenue fell for the ninth straight quarter in 2Q17.

Structural changes mainly associated with the refranchising of the company’s bottling operations and currency headwinds impacted the company’s results in 2Q17. The company’s soda volumes remain unimpressive. Coca-Cola is looking for growth in low or no-calorie soda options and in the noncarbonated beverage space. We’ll have more analysis in Part 4 of this series.

The next part of this series will focus on the company’s 2Q17 earnings.

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