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Soft Drinks Stock Q4 Earnings Roster on Feb 10: KO, PEP & COCO
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The fourth-quarter 2021 earnings season is in full swing and we have several companies reporting earnings in the next few days. Of these, three Beverages – Soft Drinks companies are expected to post their quarterly numbers on Feb 10, 2022. Amid the recovering economy and reopening of markets post the pandemic menace, the soft drinks stocks are expected to have benefitted from continued strong demand trends and recovery worldwide.
The increased consumer mobility, reopening of the away-from-home channel, continued strong demand in the at-home channels and improved price/mix are likely to have aided sales of soft drink makers in the fourth quarter. Additionally, companies in the industry are expected to have gained from the focus on improving their brands and products through continued innovation. New products and packaging have been aiding the sales volumes of companies in recent quarters.
Consequently, companies in the soft drinks space are expected to have witnessed robust unit volume growth in the to-be-reported quarter. Price mix is expected to have benefited from pricing actions across the industry to negate the impacts of supply-chain headwinds, as well as favorable channel and packaging mix.
Soft drink companies are also likely to have witnessed growth in the to-be-reported quarter, driven by accelerated investments to expand their digital presence. The companies have been strengthening consumer connections through digitally-enabled platforms to capture the splurge in online demand.
However, the impacts of supply-chain disruptions and inflationary pressures from labor, transportation and commodity costs have been impacting the industry players. The aforementioned factors are expected to have weighed on margins in the to-be-reported quarter. Additionally, increased marketing expenses related to investments in markets and promotions to support growth are anticipated to have led to SG&A deleverage in the fourth quarter.
On that note, let’s take a closer look at some soft drinks stocks, which are slated to report fourth-quarter 2021 results on Feb 10. These companies form part of the Zacks Consumer Staples sector. Per the latest Earnings Preview, the total earnings of the Consumer Staples sector are anticipated to decline 0.6%, while revenues are expected to advance 11%. The Coca-Cola Company (KO - Free Report) , PepsiCo Inc. (PEP - Free Report) and Vita Coco Company (COCO - Free Report) are due to report earnings on Feb 10.
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
The Coca-Cola Company has been benefiting from strategic transformation and ongoing recovery around the world. The company’s top line has been improving, owing to the increased consumer mobility and the reopening of economies in several parts, which have led to increased away-from-home channel sales. The persistence of growth in the away-from-home channel is expected to have boosted volumes in the to-be-reported quarter. The company’s revenues are expected to have gained from improved price/mix, higher concentrate sales and unit case volume growth in the fourth quarter.
Accelerating investments to expand its digital presence are also expected to have boosted the company’s fourth-quarter performance. Aggressive cost-saving measures across the organization are expected to have helped partly cushion the operating margin in the fourth quarter. This is anticipated to have aided the bottom line.
Nevertheless, Coca-Cola has been witnessing pressures from higher supply-chain costs, including transportation expenses. It has also been witnessing pressures related to commodity and material cost inflation. The pressures from input cost inflation and other costs are likely to have hurt the company’s performance in the fourth quarter. Higher marketing spending, and an increase in short-term incentive and stock-based compensation are also expected to have led to increased selling, general and administrative expenses in the fourth quarter.
Our proven model predicts an earnings beat for Coca-Cola in fourth-quarter 2021. The company has a Zacks Rank #3 and an Earnings ESP of +0.89%. The Zacks Consensus Estimate for its fourth-quarter revenues is pegged at $8.9 billion, suggesting 3.2% growth from the prior-year quarter’s reported figure. For fourth-quarter earnings, the consensus mark is pegged at 40 cents, indicating a decline of 14.9% from the year-ago quarter’s reported figure. The consensus mark has been unchanged in the past 30 days. (Read More: Factors Likely to Influence Coca-Cola's Q4 Earnings)
PepsiCo has been gaining from the resilience and strength in its global snacks and foods business, and growth in the beverage category. Market share growth in the liquid refreshment beverage category has been aiding the beverage business. Meanwhile, the food business has been benefiting from share gains in salty and savory snacks, meals, and instant oatmeal, including innovative product launches like the Cheetos Mac ‘n Cheese and Quaker Protein Instant Oatmeal. Growth in both categories is likely to have aided sales and earnings in the fourth quarter.
The company is also expected to have benefited from resilient trends in the North America business. The PBNA segment is likely to have reflected continued gains from investments in innovation, pricing and execution. The company has been benefiting from brand investments, go-to-market systems, supply chain, manufacturing capacity and digital capabilities to build competitive advantages. Robust pricing and volume gains have also been aiding its performance.
However, the impacts of supply-chain disruptions and inflationary pressures from labor, transportation and commodity costs are likely to have marred the company’s fourth-quarter 2021 performance. The aforementioned factors are expected to have weighed on the company’s gross and operating margins in the to-be-reported quarter.
Our proven model does not conclusively predict an earnings beat for PepsiCo this time around. The company sports a Zacks Rank #4 and has an Earnings ESP of +0.33%. The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $24.3 billion, implying 8.2% growth from the year-ago quarter's reported figure. For quarterly earnings, the Zacks Consensus Estimate is pegged at $1.53, suggesting growth of 4.1% from the prior-year quarter’s reported figure. The consensus mark has moved down by a penny in the past seven days. (Read More: Factors to Determine the Fate of PepsiCo in Q4 Earnings)
Vita Coco has been benefiting from the momentum in demand for its better-for-you beverage brands. The company’s fourth-quarter 2021 performance is likely to have benefited from an accelerated demand for its high-growth Coconut Water category and the ability to bring new products and brands to consumers looking for healthy alternatives to conventional beverages. This is likely to have aided the company’s top line in the to-be-reported quarter. It is also expected to have gained from the increasing consumer demand for better-for-you natural and plant-based beverages.
However, the company’s cost of sales is likely to have been impacted by the continued increase in ocean freight transportation costs. On the last reported quarter’s earnings call, management stated that it expects to offset inflationary costs through increased volume and improved price/mix to generate gross profit and income from operations growth in the fourth quarter. Nonetheless, inflated freight and transportation costs are likely to have marred the bottom line.
Our proven model does not conclusively predict an earnings beat for Vita Coco this season. The company has a Zacks Rank #3 and an Earnings ESP of 0.00%. The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $77.2 million, whereas the same for the bottom line is pegged at a loss per share of 5 cents.
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Soft Drinks Stock Q4 Earnings Roster on Feb 10: KO, PEP & COCO
The fourth-quarter 2021 earnings season is in full swing and we have several companies reporting earnings in the next few days. Of these, three Beverages – Soft Drinks companies are expected to post their quarterly numbers on Feb 10, 2022. Amid the recovering economy and reopening of markets post the pandemic menace, the soft drinks stocks are expected to have benefitted from continued strong demand trends and recovery worldwide.
The increased consumer mobility, reopening of the away-from-home channel, continued strong demand in the at-home channels and improved price/mix are likely to have aided sales of soft drink makers in the fourth quarter. Additionally, companies in the industry are expected to have gained from the focus on improving their brands and products through continued innovation. New products and packaging have been aiding the sales volumes of companies in recent quarters.
Consequently, companies in the soft drinks space are expected to have witnessed robust unit volume growth in the to-be-reported quarter. Price mix is expected to have benefited from pricing actions across the industry to negate the impacts of supply-chain headwinds, as well as favorable channel and packaging mix.
Soft drink companies are also likely to have witnessed growth in the to-be-reported quarter, driven by accelerated investments to expand their digital presence. The companies have been strengthening consumer connections through digitally-enabled platforms to capture the splurge in online demand.
However, the impacts of supply-chain disruptions and inflationary pressures from labor, transportation and commodity costs have been impacting the industry players. The aforementioned factors are expected to have weighed on margins in the to-be-reported quarter. Additionally, increased marketing expenses related to investments in markets and promotions to support growth are anticipated to have led to SG&A deleverage in the fourth quarter.
On that note, let’s take a closer look at some soft drinks stocks, which are slated to report fourth-quarter 2021 results on Feb 10. These companies form part of the Zacks Consumer Staples sector. Per the latest Earnings Preview, the total earnings of the Consumer Staples sector are anticipated to decline 0.6%, while revenues are expected to advance 11%. The Coca-Cola Company (KO - Free Report) , PepsiCo Inc. (PEP - Free Report) and Vita Coco Company (COCO - Free Report) are due to report earnings on Feb 10.
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
You can see the complete list of today’s Zacks #1 Rank stocks here.
The Coca-Cola Company has been benefiting from strategic transformation and ongoing recovery around the world. The company’s top line has been improving, owing to the increased consumer mobility and the reopening of economies in several parts, which have led to increased away-from-home channel sales. The persistence of growth in the away-from-home channel is expected to have boosted volumes in the to-be-reported quarter. The company’s revenues are expected to have gained from improved price/mix, higher concentrate sales and unit case volume growth in the fourth quarter.
Accelerating investments to expand its digital presence are also expected to have boosted the company’s fourth-quarter performance. Aggressive cost-saving measures across the organization are expected to have helped partly cushion the operating margin in the fourth quarter. This is anticipated to have aided the bottom line.
Nevertheless, Coca-Cola has been witnessing pressures from higher supply-chain costs, including transportation expenses. It has also been witnessing pressures related to commodity and material cost inflation. The pressures from input cost inflation and other costs are likely to have hurt the company’s performance in the fourth quarter. Higher marketing spending, and an increase in short-term incentive and stock-based compensation are also expected to have led to increased selling, general and administrative expenses in the fourth quarter.
Our proven model predicts an earnings beat for Coca-Cola in fourth-quarter 2021. The company has a Zacks Rank #3 and an Earnings ESP of +0.89%. The Zacks Consensus Estimate for its fourth-quarter revenues is pegged at $8.9 billion, suggesting 3.2% growth from the prior-year quarter’s reported figure. For fourth-quarter earnings, the consensus mark is pegged at 40 cents, indicating a decline of 14.9% from the year-ago quarter’s reported figure. The consensus mark has been unchanged in the past 30 days. (Read More: Factors Likely to Influence Coca-Cola's Q4 Earnings)
CocaCola Company The Price and EPS Surprise
CocaCola Company The price-eps-surprise | CocaCola Company The Quote
PepsiCo has been gaining from the resilience and strength in its global snacks and foods business, and growth in the beverage category. Market share growth in the liquid refreshment beverage category has been aiding the beverage business. Meanwhile, the food business has been benefiting from share gains in salty and savory snacks, meals, and instant oatmeal, including innovative product launches like the Cheetos Mac ‘n Cheese and Quaker Protein Instant Oatmeal. Growth in both categories is likely to have aided sales and earnings in the fourth quarter.
The company is also expected to have benefited from resilient trends in the North America business. The PBNA segment is likely to have reflected continued gains from investments in innovation, pricing and execution. The company has been benefiting from brand investments, go-to-market systems, supply chain, manufacturing capacity and digital capabilities to build competitive advantages. Robust pricing and volume gains have also been aiding its performance.
However, the impacts of supply-chain disruptions and inflationary pressures from labor, transportation and commodity costs are likely to have marred the company’s fourth-quarter 2021 performance. The aforementioned factors are expected to have weighed on the company’s gross and operating margins in the to-be-reported quarter.
Our proven model does not conclusively predict an earnings beat for PepsiCo this time around. The company sports a Zacks Rank #4 and has an Earnings ESP of +0.33%. The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $24.3 billion, implying 8.2% growth from the year-ago quarter's reported figure. For quarterly earnings, the Zacks Consensus Estimate is pegged at $1.53, suggesting growth of 4.1% from the prior-year quarter’s reported figure. The consensus mark has moved down by a penny in the past seven days. (Read More: Factors to Determine the Fate of PepsiCo in Q4 Earnings)
PepsiCo, Inc. Price and EPS Surprise
PepsiCo, Inc. price-eps-surprise | PepsiCo, Inc. Quote
Vita Coco has been benefiting from the momentum in demand for its better-for-you beverage brands. The company’s fourth-quarter 2021 performance is likely to have benefited from an accelerated demand for its high-growth Coconut Water category and the ability to bring new products and brands to consumers looking for healthy alternatives to conventional beverages. This is likely to have aided the company’s top line in the to-be-reported quarter. It is also expected to have gained from the increasing consumer demand for better-for-you natural and plant-based beverages.
However, the company’s cost of sales is likely to have been impacted by the continued increase in ocean freight transportation costs. On the last reported quarter’s earnings call, management stated that it expects to offset inflationary costs through increased volume and improved price/mix to generate gross profit and income from operations growth in the fourth quarter. Nonetheless, inflated freight and transportation costs are likely to have marred the bottom line.
Our proven model does not conclusively predict an earnings beat for Vita Coco this season. The company has a Zacks Rank #3 and an Earnings ESP of 0.00%. The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $77.2 million, whereas the same for the bottom line is pegged at a loss per share of 5 cents.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.