Coca-Cola stocks jump to earnings surprises when companies call Trump’s tariffs “manageable.”
coca cola (that) offers the defensive properties of the business model to investors who weather the brutal trade war.
The beverage giant’s stock rose nearly 2% in pre-market trading on Tuesday as it won first-quarter earnings and failed to issue warnings in full-year guidance. The company said in a statement it expects the impact of the trade war to be “manageable” this year.
That doesn’t mean that consumers are not showing any indication that they are under pressure as large companies have begun to raise prices to compensate for the higher costs of doing business.
Nearby: April 28th at 4:02pm EDT
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For example, Coke’s North American business increased its price by 8%, resulting in a 3% reduction in unit cases. It was the second-largest price rise in the coke sector after a 16% hike in Latin America.
“The organic foundations remain strong worldwide, but are still affected by global macro pressure. We are calling for weaknesses in the US Coca-Cola in the second half of the quarter. However, we believe KO is well positioned to manage through global volatility and have the right levers to provide annual targets.”
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Net sales: -2% Estimated $11.1 billion and $11.14 billion compared to the previous year
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Growth in organic sales: +6% year-on-year +5.2% estimate
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Core EPS: +Estimated 1% year-on-year $0.73 vs. $0.72
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Important comments: The impact of tariffs is “manageable”
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Growth in organic sales: Estimates from +5 to +6% vs +5.63% (previous guidance: +5% to +6%)
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Core EPS: Estimates from +2% to +3% to $2.96 vs $2.96 (Previous Guidance: +2% to +3%/$2.94 to 2.97)
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Programming notes: James Quincey, chairman and CEO of Coca-Cola, lives at Yahoo Finance at 10:30am today. Can be tuned here.
Brian Sotzi I’m the executive editor of Yahoo Finance. Follow sozzi with x @Briansozzi, Instagramand LinkedIn. A hint for the story? Please email brian.sozzi@yahoofinance.com.
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