Shares of Coca-Cola Inc. KO,
It rose 1.8% in premarket trading on Tuesday, after the beverage and snack giant reported a second-quarter profit that exceeded expectations, but revenue fell a bit shy, amid the resulting challenges of the coronavirus pandemic. Net income fell to $ 1.78 billion, or 41 cents a share, from $ 2.61 billion, or 61 cents a share, in the same period last year. Excluding non-recurring items, adjusted earnings per share reached 42 cents, above the FactSet consensus of 40 cents. Revenue fell 28% to $ 7.15 billion, below the FactSet consensus of $ 7.21 billion. Unit case volume fell 16% from a year ago, but improved from a 25% decrease for April to a 10% decrease in June. Operating margin decreased to 27.7% from 29.9%, citing pressure on revenue and the negative impact of currency conversion. “We believe the second quarter will be the most challenging of the year; however, we still have work to do as we drive our quest for ‘Drinks for Life’ and meet changing consumer needs,” said Chief Executive James Quincey. The stock has fallen 16.7% so far this year through Monday, while the DIA Jones Industrial Average DJIA,
It has slipped 6.5%.
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