Ahead of the opening bell on Wednesday, Coca-Cola is expected to report earnings of 58 cents a share on revenue of $11.6 billion, according to a consensus estimate from Thomson Reuters.
Investors are wondering if Coke can sustain its five-quarter streak of earnings beats. They also will be paying close attention to Coke’s top-line growth, after it slowed in the first quarter.
Questions center on whether the Atlanta beverage giant will be able to reach its 2016 organic revenue forecast, which calls for a 4 percent to 5 percent gain. Organic revenue excludes or adjusts for foreign currency effects as well as the impact of acquisitions and divestitures.
Citing Nielson data and the modest sales growth seen at rival Pepsi during the latest quarter, Jefferies analyst Kevin Grundy said ahead of the results Coke will likely guide toward the lower end of the range.
Coke has been facing a number of headwinds, ranging from volatile currency fluctuations during the quarter to weakness in China and Brazil, two of Coke’s key markets.
Source: CNBC
