Coke Earnings Paint A Weak Picture Of The U.S. Consumer, But It Doesn't Matter

Coca-Cola’s latest Q1 earnings remind us how much the company is now a play on global demand, rather than U.S. demand.

Comparable Q1 earnings per share were up 23% despite the fact that U.S. demand was horribly weak. It seems Americans must have been cutting out beverage spending in order to save money, in addition to shifting away from unhealthy soft drinks.

While Coke missed analyst expectations on both the earnings and revenue front and shares are down slightly pre-market, 3/4’s of the company’s sales come from abroad, where growth is robust or at least decent, thus the company grew its earnings rapidly, even if by less than analysts expected.

Total operating income grew by 17% despite a 6% revenue drop in the U.S.:



Thus Q1 shows how the company is a pretty straight forward play on global growth. It’s also probably a better inflation hedge from a risk/reward perspective than gold.

You can find their full earnings release below:


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