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Earnings AlertSymbol: $KO
Price: $47.20
Dividend: $1.64
Yield: 3.5%
Payout Ratio: 85%
YTD: -13%
$KO is a favorite for many dividend investors as the company has increased their dividend for 57yrs.
On Tuesday $KO reported Q2 mixed earnings results
EARNINGS THREAD
Q2 has been a challenging quarter for many companies due to the COVID-19 pandemic.
$KO Q2 results:
Rev: -28% to $7.2B (expected $7,2B)
Organic Rev: -26%
Oper Margin: 27.7% down from 29.9% from PY
EPS: $0.41 down 32%
Adj EPS: $0.42 down 33% (expected: 0.40)
$KO Q2 results:
Rev: -28% to $7.2B (expected $7,2B)Organic Rev: -26%Oper Margin: 27.7% down from 29.9% from PYEPS: $0.41 down 32%Adj EPS: $0.42 down 33% (expected: 0.40)
Global Unit Case Volume: -16%YTD Cash Flow from oper: $2.8B, down 38% from PYFCF: $2.3B, down 40% from PYNotes from the Q2 release:
- 4th consecutive qtr of decreasing revenues
- Case vol has improved. Vol dropped 25% in April and improved to a decrease of 10% in June.
- July thus far is down in the mid-single digits according to the CEO
- The company paused all social media advertising for 30 days as they plan a "refreshed" marketing approach.
- CEO James Quincey did indicate layoffs could be coming as they look to streamline their portfolio.
- The company paused all social media advertising for 30 days as they plan a "refreshed" marketing approach.
- CEO James Quincey did indicate layoffs could be coming as they look to streamline their portfolio.
$KO is definitely going through tough economic challenges right now. In terms of dividends, I do not expect big increases moving forward with financial slowdowns and an inflated payout ratio nearing 90%.
Next, let's take a look at valuations
Next, let's take a look at valuations
