Shares of Coca-Cola Co. (KO) soared by 2.4% during premarket trading on Tuesday following the beverage giant’s impressive third-quarter results. The company exceeded profit expectations and provided an optimistic outlook for the future, as unit case volume witnessed a return to growth.
- Net income for the quarter rose to $3.09 billion, or 71 cents a share, compared to $2.83 billion, or 65 cents a share, in the year-ago period.
- Adjusted earnings per share of 74 cents surpassed the FactSet consensus of 69 cents, after excluding nonrecurring items.
- Revenue experienced notable growth of 8.0%, reaching $11.95 billion, surpassing the FactSet consensus of $11.44 billion.
Sequential Growth in Key Metrics
Coca-Cola Co. reported a significant increase in both price and mix, which rose by 9%. Additionally, concentrate sales and unit case volume demonstrated a 2% growth, marking a recovery from the flat volume experienced in the second quarter.
Positive Outlook for 2023
The company remains optimistic about its future performance and anticipates adjusted EPS growth of 7% to 8% for 2023 compared to $2.48 in 2022. This implies an expected EPS range of $2.65 to $2.68, surpassing the current FactSet consensus of $2.64.
While the stock had previously experienced a decline of 13.4% over the past three months through Monday, it is important to note that the Dow Jones Industrial Average (DJIA) also fell by 7.0% during the same period.
Coca-Cola Co. continues to position itself as a strong player in the beverage industry, supported by impressive financial results and a positive outlook for growth in 2023.