The Coca-Cola Company ($KO) Earnings (Q1 FY22)

 The Coca-Cola Company ($KO) Earnings and Opinion:


Coca-Cola is a company in the Consumer Defensive sector and operates in the Beverages-Non-Alcoholic industry. The company sells various non-alcoholic beverages worldwide. Coca-Cola was founded in 1886 and is currently headquartered in Atlanta, Georgia. The company was first traded on the stock market all the way back in 1919.

Coca-Cola EPS and Revenue (Q1 FY22):

  • EPS of $0.64 beating expectations of $0.58
  • Revenue of $10.5B beating expectations of $9.83B
Coca-Cola Q1 Highlights:
  • Net Revenues grew 16% (YOY)
  • EPS grew 23% (YOY)
  • Cash flow from operations was $620M
  • Free cash flow was $400M
Opinion:
Coca-Cola traded higher today after posting some stellar numbers from the first quarter of this fiscal year. They had some solid beats on EPS and revenue and were also to grow them by a fairly decent percentage on a year-over-year basis. The company seems to be on a hot streak right now with prices hitting all-time highs, even in a tough market. Coca-Cola seemed to slack a little bit in the cash flow statements. The cash flow numbers came in about a billion dollars lower than the levels they were at last year at this point. I don't think this is much of a concern for them though, they have picked up a lot of key acquisitions in the past. I'm guessing why some of this cash is burning and I have faith that the CFO and CEO are in coordination to make the correct decisions. Coca-Cola saw rates of their prices increase for consumers, but that didn't stop them from increasing revenues. This is a sign that their products could be almost be seen as inelastic. Even though Coca-Cola has a lot of different businesses under them, they produce a lot of highly addictive and reliant non-alcoholic beverages. This is my logic behind calling some of their products inelastic. I think it is genuinely impressive when a company is able to do something like this and it attracts a lot of investors like me. Personally, I do not have any ownership in Coca-Cola, but I have been close to pulling the trigger on a position multiple times. The valuations seem to be a little bit high for me to enter in, but I feel like using dollar-cost averaging could help you factor in the high valuations. The company also pays a solid dividend and will continue to pay one forever with the types of net income they generate. I hate saying time the market, but I think there is turmoil to be faced with this company, especially with the digestion of moving out of Russia. Therefore, I could see discounted stock prices coming up soon, so I am going to be patient and wait for those times to get some ownership here. 

*Information from Coca-Cola, Yahoo Finance, and Nasdaq
*Estimates from Zacks

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