Coca-Cola's Earnings Were 'Good' Says Jim Cramer
Coca-Cola posted stronger-than-expected second-quarter earnings but saw a steep decline in revenue as stadiums, restaurants, and movie theaters remained closed during the coronavirus pandemic.
Coca-Cola said the revenue declines were "primarily driven by pressure in away-from-home channels, which represent approximately half of the company’s revenues" and include clients such as sports stadiums and restaurants.
Coca-Cola, which pulled its full-year earnings forecast on April 21, said "ongoing uncertainty" continues to cloud near-term profit visibility, but expects currency headwinds of 'high single-digits' to impact operating earnings, owing to the strength of the U.S. dollar.
"I'm proud of the people of the Coca-Cola system as we continue to adjust and accelerate our strategies in this fast-changing landscape," said CEO James Quincey. "We believe the second quarter will prove to be the most challenging of the year; however, we still have work to do as we drive our pursuit of 'Beverages for Life' and meet evolving consumer needs."
"The company will also streamline the innovation pipeline against initiatives that are scalable regionally or globally as well as maintain a disciplined approach to local experimentation in order to further strengthen the company's leader, challenger and explorer framework," the company said.
So, what’s Jim Cramer looking at in the Coca-Cola earnings and what do they mean for PepsiCo?
Watch the video above for more.
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