A delivery truck driver unloads soft drinks from Coca-Cola Co. on Monday, February 10, 2020 in Lawrenceburg, Kentucky, United States.
Luke Sharrett | Bloomberg | Getty Images
Coca-Cola is expected to announce its fourth quarter results before the bell on Wednesday.
Wall Street analysts surveyed by Refinitiv expect the following:
- Earnings per share: 42 cents expected
- Revenue: $ 8.63 billion expected
The beverage giant was hit hard by the coronavirus pandemic. Before the crisis, around half of sales were dependent on consumers buying drinks from home. Sales in the third quarter were down 9%, and all four beverage segments had single case volumes.
Another wave of European lockdowns this winter likely put additional pressure on Coke’s business and slowed its recovery. CEO James Quincey told analysts in October that the company expected winter to be the toughest season in the northern hemisphere.
In response to the pandemic, Coke accelerated restructuring and downsized the portfolio. It cut off drinks like Tab and Odwalla, which were not selling well, and plans to lay off about 2,200 workers worldwide. However, the transformation has its own costs. Overall, Coke expects to spend $ 350 million to $ 550 million on severance costs. The company reported an impairment loss of $ 160 million in the third quarter tied to the Odwalla brand.
Cola stocks are down 16% over the past year, dragging their market value to $ 213.58 billion.
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