Coca-Cola earnings beat estimates as demand for drinks away from home tops pre-pandemic levels

Coca-Cola is expected to report its fourth-quarter results before the bell on Thursday.

Here’s what Wall Street analysts surveyed by Refinitiv are expecting:

• Earnings per share: 41 cents expected
• Revenue: $8.96 billion expected

Last quarter, Coke saw a strong demand for its drinks return as consumers began visiting restaurants, movie theaters and sports arenas more regularly. However, the omicron variant may have reversed some of that progress. Roughly half of Coke’s revenue comes from on-premise occasions, giving the company higher exposure to Covid-related restrictions than rival PepsiCo, which is also expected to report earnings before the bell Thursday.

Coke CEO James Quincey said on CNBC in October that the company’s stock is likely getting punished for the away-from-home business. Over the last two months, shares have been on a steady climb upward, gaining 11%. The stock has a market value of $265 billion.

Inflation poses another challenge to Coke. Like other consumer packaged goods companies, Coke is facing higher costs ranging from freight to orange juice. The beverage giant has been strategically raising prices across its portfolio, but it risks consumers trading down to private label products.

For 2022, Wall Street is expecting the company will earn $2.43 per share and report revenue of $40.45 billion.