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updated: 7/18/2011 11:23 AM

Earnings Preview: Coca-Cola Co.

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Associated Press

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.

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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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