Coca-Cola (KO.US) published today financial results for the first quarter of 2022, which turned out to be much better than Wall Street's expectations,
- Revenues: $10.5 billion vs expectations of $9.83 billion (an increase of almost 16% compared to the same quarter in 2021)
- Earnings per share (EPS): $ 0.64 vs expectations of $ 0.58 (up over 10%)
- Net profit: $ 2.78 billion
- Coca Cola was one of the companies that closed operations in Russia after the country's aggression against Ukraine. However, this move will not hit the company's results significantly, the management board estimates a loss of USD 0.04 per share.
- Demand for Coca Cola products is still at stable and high level, the key impact on the better financial result was the higher prices of the company's products and the easing of restrictions that allowed them to be purchased in cinemas, bars and restaurants;
- Coca Cola maintains its optimistic forecasts for 2022 - 7% sales increase and 6% higher EPS
- The company's shares are characterized by low volatility compared to other shares listed on the US stock exchange, one of the largest shareholders is Berkshire Hathaway, managed by legendary investors Warren Buffett and Charlie Munger;
Coca Cola (KO.US), D1 interval. The share price has managed to recover from the massive declines caused by the outbreak of the coronavirus pandemic and is trading above the 2020 highs. The outbreak of the war in Ukraine had a limited impact on the stock performance. In 2021, a double-bottom formation emerged which helped market bulls. On the other hand, if sellers manage to regain control, a possible correction move may be heading towards major support around $59.00, which coincides with 23.6 Fibonacci retracement and the price highs from 2020. Shares may launch today’s session around $ 66.5 level. Source: xStation5
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile appThe content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
