Coca-Cola rises with profit exceeding estimates
Coca-Cola (KO) reported profit and revenue above expectations in the third quarter, despite price increases on its products. The company's stock rose nearly 3% in pre-market trading.
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In the third quarter, the company's earnings per share came in at 0.74 dollars, exceeding analyst expectations of 0.69 dollars. Its revenue surpassed the 11.44 billion dollar forecast, rising 8% compared to the same period last year to 11.91 billion dollars.
Just like many other companies, Coca-Cola had been raising its prices for the last two years due to rising commodity costs. In fact, in the third quarter, the prices of Coca-Cola products were 9% higher than in the same period last year. However, in July, the company announced that it would end price increases in the US and Europe.
Although the company's North American volume remained flat during this period, customers purchased more Coke Zero Sugar and Fairlife beverages. In the third quarter, all of Coca-Cola's beverage segments saw volume growth.
To make a comparison, PepsiCo (PEP), which announced its balance sheet last week, had stated that its beverage volume in North America had contracted by 6%.
The company also raised its forecasts for 2023. Coca-Cola expects earnings per share to grow in the range of 7% to 8% in 2023. The company's previous expectation was in the 5%-6% range.
Coca-Cola also raised its organic revenue expectation from the previous 8%-9% range to the 10%-11% range.