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Coca-Cola Boost FY21 Outlook As Q2 Results Top Estimates - Quick Facts

Beverages giant Coca-Cola Co. (KO) reported Wednesday a 48 percent increase in profit for the second quarter from last year on a revenue growth of 42 percent and improved margins. Adjusted earnings per share and quarterly revenues topped analysts' expectations. The company also raised its adjusted earnings and organic revenue growth outlook for the full-year 2021.

Net income attributable to shareowners of Coca-Cola for the second quarter increased 48 percent to $2.64 billion or $0.61 per share from $1.78 billion or $0.41 per share in the prior-year quarter. Excluding items, comparable earnings per share were $0.68, compared to last year's $0.42.

On average, 19 analysts polled by Thomson Reuters expected the company to report earnings of $0.55 per share for the quarter. Analysts' estimates typically exclude special items.

Net operating revenues for the quarter increased 42 percent to $10.13 billion from $7.15 billion in the same quarter last year, driven by a 26 growth in concentrate sales and an 11 percent growth in price/mix. The Street expected revenue of $9.25 billion for the quarter.

Organic revenues also grew 37 percent in the quarter.

Looking ahead to the third quarter, Coca-Cola projects comparable net revenues on an adjusted basis to be impacted by 2 percent currency tailwind based on the current rates and including the impact of hedged positions. Comparable earnings are expected to include an approximate 3 to 4 percent currency tailwind.

For fiscal 2021, the company now projects comparable earnings to grow in a range of 13 to 15 percent from the $1.95 per share reported in 2020, with a 2 to 3 percent currency tailwind. It also projects organic revenue growth of 12 to 13 percent, with a 1 to 2 percent currency tailwind.

Previously, the company expected comparable earnings to grow in a range of high single digits to low double digits percentage compared to $1.95 per share in 2020, with a 2 to 3 percent currency tailwind. It also expected organic revenue growth in the high single digit percentage, with a 1 to 2 percent currency tailwind.

The Street is looking for earnings of $2.18 per share on revenue growth of 11.8 percent to $36.90 billion for the year.

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