NYSE$KO

Coca-Cola · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Coca-Cola's performance was impacted by the coronavirus pandemic, with revenue declines partially offset by effective cost management and growth in at-home channels.

Coca-Cola reported a 9% decline in net revenues to $8.7 billion, and a 6% decline in organic revenues. EPS declined 33% to $0.40, while comparable EPS declined 2% to $0.55. The company is focused on emerging stronger from the pandemic through strategic actions.

  • Net revenues declined 9% to $8.7 billion; organic revenues declined 6%.
  • Operating income declined 8%; comparable currency neutral operating income grew 7%.
  • EPS declined 33% to $0.40; comparable EPS declined 2% to $0.55.
  • Company lost value share in total nonalcoholic ready-to-drink beverages due to pressure in away-from-home channels.

Headline financials

Total Revenue

$8.65B

Previous: $9.51B-9.0%
EPS (adj)

$0.55

Previous: $0.56-1.8%
Organic revenue growth

-6.0%

No prior period
Unit case volume growth

-4.0%

No prior period
Capital Expenditures

-$759M

Previous: -$1.21B+37.1%
Free Cash Flow

$978M

Previous: $1.39B-29.5%
Net Income

$1.74B

Previous: $2.59B-33.0%
Operating Income

$2.3B

Previous: $2.5B-8.0%
Gross Profit

$5.18B

Previous: $5.74B-9.7%
Cash & Equivalents

$11.4B

Previous: $7.53B+51.2%
Total Assets

$97.2B

Previous: $87.4B+11.2%
Stock-Based Comp

$52M

Previous: $58M-10.3%

Revenue & EPS history

Coca-Cola · Revenue · Quarterly

$8.65B

Q3 2020-9%vs Q3 2019
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Forward guidance

Due to the evolving coronavirus pandemic, the company's full year financial and operating results cannot be reasonably estimated at this time. The company expects an approximate 3% currency headwind for comparable net revenues and an approximate 6% currency headwind for comparable operating income. For the fourth quarter, comparable net revenues are expected to include an approximate 3% currency headwind and comparable operating income is expected to include an approximate 9% currency headwind.

Tailwinds

  • The company is establishing a networked structure that is comprised of operating units, category teams, Platform Services and the center.
  • The company continues to pursue its beverages for life ambition by calibrating a portfolio with an optimal set of global, regional and local brands.
  • The company is committed to exploring new products in dynamic beverage categories.
  • The company expects minimal currency impact for comparable net revenues and comparable operating income in 2021.
  • The company's balance sheet remains strong, and the company is confident in its liquidity position.

Headwinds

  • The coronavirus pandemic continues to evolve, and there is uncertainty around its ultimate impact.
  • Global unit case volume trends have continued to improve, but the pace in the third quarter was more gradual than the second quarter.
  • The company is seeing an elevated level of sales in at-home channels being more than offset by ongoing pressure in away-from-home channels.
  • The ultimate impact on the company's near-term results is unknown.
  • The company lost value share in total nonalcoholic ready-to-drink beverages due to pressure in away-from-home channels.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2020

Historical avgQ3 2020

+0.3%

Avg return

Earnings day

+0.7%

Avg return

5 days after

+0.5%

Avg return

30 days after

59%

43 / 73 earnings

Positive

+6.1%

Q1 2013

Best reaction

-9.1%

Q4 2018

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+6.0%+4.2%+6.6%
Q4 2025-1.5%+0.9%-0.5%
Q3 2025+3.7%+1.9%+4.0%
Q2 2025+0.6%-0.6%-3.6%
Q1 2025+0.8%-0.2%-0.4%
Q4 2024+4.7%+6.7%+7.9%
Q3 2024-3.1%-4.0%-8.0%
Q2 2024+1.6%+3.5%+7.0%
Q1 2024-0.2%+0.2%-0.1%
Q4 2023-0.7%-0.5%+1.3%
Q3 2023+3.8%+2.1%+8.0%
Q2 2023+0.3%-0.5%-3.0%
Q1 2023-0.3%+0.2%-4.9%
Q4 2022-1.7%-0.8%-0.5%
Q3 2022+3.2%+5.5%+8.8%
Q2 2022+1.3%+3.2%+4.0%
Q1 2022-0.3%-1.0%-1.8%
Q4 2021-1.2%-0.2%-5.1%
Q3 2021+2.9%+3.1%-1.4%
Q2 2021+1.1%+2.2%+1.5%
Q1 2021+0.9%+1.5%+0.9%
Q4 2020+1.2%+2.0%+1.3%
Q3 2020+1.1%-0.2%+5.4%
Q2 2020+5.1%+5.1%+2.7%
Q1 2020-1.8%-2.4%-2.9%
Q4 2019+2.4%+3.2%-6.2%
Q3 2019+0.8%+1.6%-2.1%
Q2 2019+5.0%+5.8%+6.4%
Q1 2019+1.2%+1.8%+5.2%
Q4 2018-9.1%-10.0%-9.0%
Q3 2018+3.1%+3.3%+5.4%
Q2 2018+2.2%+2.1%+0.8%
Q1 2018-3.5%-1.5%-3.8%
Q4 2017-1.8%-3.2%-2.9%
Q3 2017+0.1%-0.7%-0.6%
Q2 2017+1.9%+1.3%+0.7%
Q1 2017-0.1%-0.3%+4.9%
Q4 2016-3.4%-3.5%+0.6%
Q3 2016-1.0%-0.3%-2.4%
Q2 2016-2.7%-3.2%-3.5%
Q1 2016-6.3%
Q4 2015-0.2%
Q3 2015+2.2%
Q2 2015-0.8%
Q1 2015+0.4%
Q4 2014+2.8%
Q3 2014-6.2%
Q2 2014-3.7%
Q1 2014+4.8%
Q4 2013-4.7%
Q3 2013+0.2%
Q2 2013-0.4%
Q1 2013+6.1%
Q4 2012-3.6%
Q3 2012-1.0%
Q2 2012+1.3%
Q1 2012+0.8%
Q4 2011-0.4%
Q3 2011+2.1%
Q2 2011-1.4%
Q1 2011+2.0%
Q4 2010+0.9%
Q3 2010+0.8%
Q2 2010+2.3%
Q1 2009+0.2%
Q1 2010-0.8%
Q4 2007+0.3%
Q4 2009+0.3%
Q3 2008-0.3%
Q3 2009-0.3%
Q4 2008+1.1%
Q2 2008+1.1%
Q2 2009+1.1%

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