The U.S. reported that consumer prices rose sharply in April and drove the rate of inflation to the highest level in nearly 13 years; still, Wall Street’s three main indexes ended sharply higher on Friday and trimmed earlier losses. Coca-Cola shares are trading above support $50, and according to technical analysis, there is no risk of the positive trend reversal for now.
Fundamental analysis: Coca-Cola raised its outlook for the fiscal 2021 year
Coca-Cola shares have weakened from their recent highs above $55, and the current price stands around $54.7. The U.S. reported that inflation rose to the highest level in nearly 13 years, and investors have started to behave nervously amid concerns about the rising inflation.
The company’s business has proven improvements throughout the first quarter of 2021, and the company reported better than expected results last month. Total revenue has increased by 4.7% Y/Y to $9 billion, while the GAAP EPS was $0.52 for the first fiscal quarter (beats by $0.02).
Total revenue has increased above expectations, and the company raised its outlook for the fiscal 2021 year. It is important to say that organic revenues grew by 6%, primarily driven by growth in concentrate sales.
“In the first quarter, we positioned our business to recovery while executing against our emerging stronger agenda, equipping our system to win. We’re optimistic about the future and bullish about our ability to continue to deliver on the objectives we laid out at the height of the crisis,” said James Quincey, Chairman, and Chief Executive Officer.
Through the first quarter, volume trends steadily improved each month, driven by the recovery in markets from the pandemic, but the negative news is that Coca-Cola lost share in total nonalcoholic ready-to-drink (NARTD)
