Benzinga | Jul 21, 2021 08:03AM EDT

Coca-Cola Shares Gain On Strong Q2 Earnings, Raised FY21 Outlook

* Coca-Cola Co (NYSE:KO) reported second-quarter FY21 net revenue growth of 41.3% year-on-year to $10.1 billion, beating the analyst consensus of $9.25 billion. Unit case volume grew 18% in the quarter.

* Revenue growth was driven by the ongoing recovery in markets as the coronavirus-related uncertainty is starting to decrease.

* Revenue performance included 26% growth in concentrate sales and 11% growth in price/mix.

* The operating margin was 29.8%, while the comparable operating margin improved to 31.7%. Operating income for the quarter rose 52% to $3.02 billion.

* Cash flow generated from operating activities was $5.5 billion.

* Comparable EPS of $0.68 beat the analyst consensus of $0.55.

* "Our results in the second quarter show how our business is rebounding faster than the overall economic recovery, led by our accelerated transformation," said CEO James Quincey.

* Outlook: Coca-Cola sees FY21 organic revenue growth of 12% - 14%, versus prior outlook for of high single digits growth.

* It expects FY21 comparable EPS growth of 13% - 15%, versus previous guidance for percentage growth of high single digits to low double digits versus $1.95 in 2020. The growth expectations exceed analyst FY21 EPS consensus of $2.18.

* Price action: KO shares are trading higher by 1.79% at $56.83 in premarket on the last check Wednesday.

* Photo by Steve Buissinne from Pixabay