As its business continues to expand around the globe, Coca-Cola Co., the world's largest beverage maker, is expected to report a gain in profit and revenue when it announces its second-quarter results before the stock markets open Tuesday.
WHAT TO WATCH FOR: Whether Coca-Cola's costs for ingredients and packaging material are still rising.
The company, like all food and beverage companies, was had higher costs for ingredients and raw materials. The company estimated in its first-quarter earnings report that its annual commodity costs had risen by $250 million to $300 million since its previous report. One of the biggest increases was for PET plastic, used in bottles.
Coca-Cola has seen consistent growth for years, due to its popularity and steady growth in established markets as well as faster growth in emerging markets. Coca-Cola, which gets about three-quarters of its revenue abroad, said its North American business continued growing during the first quarter.
The Atlanta-based company is also expected to continue to benefit from its purchase of Coca-Cola Enterprises Inc.'s North American bottling operations and global demand for its products.
WHY IT MATTERS: Coca-Cola is a major multinational corporation. Its results provide insight into how consumers around the globe are spending their money ? and what other major consumer goods companies are experiencing.
WHAT'S EXPECTED: Analysts on average expect Coca-Cola to report adjusted earnings of $1.15 per share on revenue of $12.39 billion, according to FactSet.
LAST YEAR'S QUARTER: Last year, Coca-Cola's adjusted earnings amounted to $1.06 per share, and its revenue was $8.67 billion.
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