Coca-Cola earnings preview: Analysts watch demand after stock run

Coca-Cola earnings are due before U.S. markets open Tuesday, putting the soda giant in the spotlight after a strong stock run and fresh questions around a ransomware attack at its Fairlife dairy brand, according to CNBC.

Wall Street analysts expect Coca-Cola to post second-quarter earnings of 93 cents per share on revenue of $13.16 billion, CNBC reported. The results will show whether the company’s momentum held up as consumers faced a tougher economy and investors kept rewarding the stock.

Coca-Cola shares have gained more than 19% this year, CNBC reported, outpacing the S&P 500’s 8% rise over the same period. The company’s market value is close to $360 billion.

What are analysts expecting from Coca-Cola earnings?

Analysts are looking for 93 cents in earnings per share and $13.16 billion in revenue for the second quarter, according to estimates cited by CNBC. Earnings per share is a measure of profit allocated to each share of stock, while revenue shows how much the company brought in from sales before costs are deducted.

The bar comes after Coca-Cola said demand had been strong earlier in the year. CNBC reported that higher-income shoppers have helped support the company by paying more for premium drinks and products.

That has made Coca-Cola stand out from at least one major rival. PepsiCo, which owns Gatorade, reported earlier this month that North American beverage volume fell 4% in the second quarter, according to CNBC.

Coke’s full-year outlook is still in focus

For the full year, Coca-Cola has projected comparable earnings per share growth of 8% to 9%, CNBC reported. The company has also forecast organic revenue growth of 4% to 5%.

Comparable earnings are adjusted figures that companies use to show performance without certain one-time or unusual items. Organic revenue growth generally strips out effects such as acquisitions, divestitures and currency moves, giving investors a clearer view of sales from the existing business.

Investors will be watching Tuesday’s report for any change to those targets, especially after the stock’s climb. A company trading ahead of the wider market can face more pressure to show that sales and profit expectations remain on track.

Fairlife ransomware attack adds a wrinkle

Coca-Cola disclosed on July 17 that Fairlife, its dairy brand known for high-protein products, had been targeted in a ransomware attack, CNBC reported. Fairlife is described by CNBC as a billion-dollar brand.

The company temporarily halted production after the attack. On Monday, Coca-Cola said it had restarted most operations, according to CNBC.

Coca-Cola also said the interruption is not expected to have a material effect on its financial condition or operations, CNBC reported. Investors will be looking for any update on that disruption when the company releases results.

The report arrives with Coca-Cola in a strong market position: its stock has beaten the broader index this year, its market cap is near $360 billion, and Wall Street is waiting to see whether demand for its drinks can keep fizzing through a mixed consumer backdrop.

This story draws on original reporting from CNBC.