The Coca-Cola Company (NYSE:KO) is expected to report increased sales but flat profits when it hands down its third quarter earnings before the market open on Tuesday, October 24.
The beverage giant, whose brands include Coke, Sprite, Minute Maid, Powerade, and Fuze Tea, is expected to report a 3.6% increase in earnings from $11.06 billion in the year-ago quarter to $11.46 billion.
Earnings per share (EPS) are expected to be flat year-over-year at $0.69, according to Zacks Investment Research.
It is likely that inflationary pressures, which are driving consumers to cheaper soda brands, and higher prices of commodities like sugar and corn syrup will have continued to negatively impact Coca-Cola’s profit margins during 3Q.
Coca-Cola did not provide specific sales or profit targets for the third quarter, but when handing down its second quarter results in July said it expects its net revenue to include an approximate 2% currency headwind based on current rates and the impact of hedged positions and a 1% headwind from acquisitions, divestitures, and structural changes.
EPS percentage growth is also expected to include a 3% currency headwind.
Coca-Cola shares traded modestly higher on Wednesday afternoon, up 0.2% at US$54.17.
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