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Coca-Cola, Chipotle, Snap earnings — What to know in markets Tuesday - $KO $SNAP $CMG

Earnings kick into high gear Tuesday.

Ahead of the opening bell, investors will be focused on Coca-Cola (KO), and after the bell, Chipotle (CMG) and Snap (SNAP) will take the spotlight.
Soda giant Coca-Cola is expected to report second-quarter adjusted earnings of 61 cents per share on $9.99 billion in revenue, according to analysts polled by Bloomberg. Organic revenue growth will be watched closely after jumping 6% in the first quarter, much to Wall Street’s surprise. Management reiterated its expectation for 4% organic revenue growth in 2019.
Coca-Cola has been trying to reinvent its business, as consumer tastes continue to evolve. Wall Street analysts seem to think that the beverage giants efforts will soon pay off, even ask shares underperform the broader market and its peers. Coca-Cola stock has risen 10% this year, as the S&P 500 (^GSPC) and PepsiCo (PEP) are both up 20% in the same time period.
The options market is currently implying a 2.3% one-day move in either direction following Coca-Cola’s report.
Meanwhile, burrito giant Chipotle has been crushing it. The stock is back at record highs, and under CEO Brian Niccol’s leadership, the company has seen strong same-store sales momentum. The strength is expected to continue when Chipotle reports second-quarter earnings Tuesday.
Same-store sales, a key industry metric, is expected to have risen 8.2% during the quarter. The second quarter is the first full quarter that the Chipotle rewards program was in place. “There will be a deferred revenue/SSS drag during the period – we estimate up to 120bps on SSS due to high levels of customer acquisition into the program,” Wells Fargo analyst Jon Tower said in a note July 14.
Analysts surveyed by Bloomberg anticipate Chipotle will report second-quarter adjusted earnings of $3.76 per share on $1.41 billion in revenue. The options market is implying a 6% one-day move following the report.
In addition, social media company Snap will deliver its quarterly results after the market close Tuesday. Daily active user (DAU) growth will be the key focus for investors. According to management, Snap typically sees slower DAU growth in the second quarter versus the first quarter.
Cowen analyst John Blackledge predicts that Snap added 192 million DAUs in the second quarter, up from 189 million added in the same period last year prior. If Snap was able to add 192 million DAUs, that would represent a 2% jump year-over-year.
Snap is expected to report an adjusted earnings loss of 10 cents per share on $360.32 million in revenue. Shares of Snap have been on fire this year, rallying 158%.
Other notable companies reporting include AutoNation (AN), Biogen (BIIB), Centene (CNC) , Harley-Davidson (HOG), Hasbro (HAS), JetBlue (JBLU), Kimberly-Clark (KMB), Lockheed Martin (LMT), PulteGroup (PHM), Sherwin-Williams (SHW) and United Technologies (UTX) before the market open. Discover Financial (DFS), Texas Instruments (TXN) and Visa (V) will report after the market close.

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