Coca-Cola beat Wall Street estimates for third-quarter earnings and revenue and raised its full-year forecast for the third straight quarter. North American volume was flat, which the company tied to the Fourth of July timing and a Topo Chico shortage.
Coca-Cola raised its full-year outlook for the third straight quarter on Tuesday, even though demand in its home market was lackluster. Shares rose about 1% in premarket trading.
For the full year, Coke now expects comparable earnings per share to grow at least 11%, up from a prior forecast of 9% to 10%. It also anticipates organic revenue will climb at least 5%, versus its previous outlook of approximately 5% growth.
Results top estimates
The company reported adjusted earnings per share of 91 cents, against 88 cents expected by analysts surveyed by LSEG. Revenue came in at $13.4 billion versus $12.92 billion expected.
Net sales rose 7% to $13.4 billion, and organic revenue also rose 7%. Third-quarter net income attributable to shareholders reached $4.01 billion, or 93 cents per share, up from $3.7 billion, or 86 cents per share, a year earlier.
Volume grows outside North America
Unit case volume increased 5% for the second straight quarter, helped by higher demand outside North America. Coca-Cola Zero Sugar volume grew 16% internationally, according to Coinpedia.
Coke's home market, however, reported flat volume. CFO John Murphy told CNBC the North American business would have grown if not for the timing of the Fourth of July holiday and a months-long shortage of Topo Chico.
In recent quarters, Coke executives have said North American shoppers are under pressure from inflation and economic uncertainty, but that consumers are still buying its drinks. Murphy said consumers at every income level are looking for value.
Sparkling drinks and water volume rise 5%
Globally, sparkling soft drinks volume rose 5%, lifted by Coke, Coke Zero Sugar and Diet Coke. Murphy said Diet Coke is having a resurgence and that Coke has gained market share as PepsiCo's soda business struggles.
The water, sports, coffee and tea division also saw volume climb 5%, driven by water demand. Tea and coffee volume was flat, while sports drinks declined.
Sources: CNBC, Coinpedia Fintech News
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