Coca-Cola earnings top estimates, despite 9% decline in revenue

Business

A person wearing a mask pushes a dolly cart past a Coca-Cola truck as the city continues Phase 4 of re-opening following restrictions imposed to slow the spread of coronavirus on September 16, 2020 in New York City.

Alexi Rosenfeld | Getty Images

Coca-Cola is expected to report its third-quarter results on Thursday before the bell.

Here’s what Wall Street analysts surveyed by Refinitiv are expecting:

  • Earnings per share: 46 cents expected
  • Revenue: $8.36 billion expected

The coronavirus pandemic has upended Coke’s business, introducing new challenges to its supply chain and shrinking its revenue. Movie theaters, restaurants, office buildings and other away-from-home outlets typically accounted for about half of Coke’s revenue, but the crisis has caused those sales to plummet.

Last quarter, Coke reported its largest quarterly decline in revenue in at least three decades. CEO James Quincey said at the time that its second quarter was expected to be its toughest of 2020.

Meantime, Coke is trying to emerge from the pandemic stronger. In late August, the beverage giant announced a workforce restructuring plan that includes voluntary buyouts.

Coke is also streamlining its drink portfolio, cutting beverages like Tab, its first diet soda, and Zico coconut water. The pandemic accelerated the plans to retire many of its less popular drinks that took resources away from its biggest brands or those with the most growth potential.

Shares of Coke, which has a market value of $215 billion, have fallen 9% so far this year.

This story is developing. Please check back for updates.

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