Coca-Cola (KO.US) published today financial results for the first quarter of 2022, which turned out to be much better than Wall Street's expectations,
- Revenues: $10.5 billion vs expectations of $9.83 billion (an increase of almost 16% compared to the same quarter in 2021)
- Earnings per share (EPS): $ 0.64 vs expectations of $ 0.58 (up over 10%)
- Net profit: $ 2.78 billion
- Coca Cola was one of the companies that closed operations in Russia after the country's aggression against Ukraine. However, this move will not hit the company's results significantly, the management board estimates a loss of USD 0.04 per share.
- Demand for Coca Cola products is still at stable and high level, the key impact on the better financial result was the higher prices of the company's products and the easing of restrictions that allowed them to be purchased in cinemas, bars and restaurants;
- Coca Cola maintains its optimistic forecasts for 2022 - 7% sales increase and 6% higher EPS
- The company's shares are characterized by low volatility compared to other shares listed on the US stock exchange, one of the largest shareholders is Berkshire Hathaway, managed by legendary investors Warren Buffett and Charlie Munger;
Coca Cola (KO.US), D1 interval. The share price has managed to recover from the massive declines caused by the outbreak of the coronavirus pandemic and is trading above the 2020 highs. The outbreak of the war in Ukraine had a limited impact on the stock performance. In 2021, a double-bottom formation emerged which helped market bulls. On the other hand, if sellers manage to regain control, a possible correction move may be heading towards major support around $59.00, which coincides with 23.6 Fibonacci retracement and the price highs from 2020. Shares may launch today’s session around $ 66.5 level. Source: xStation5
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