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Coca-Cola hikes earnings outlook, even as it sees lackluster demand in North America
Coca-Cola stock has climbed about 32% so far this year, raising the beverage company's market cap to roughly $398 billion.
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Coca-Cola on Tuesday raised its full-year outlook for the third straight quarter, despite lackluster demand in its home market.
For the full year, Coke now expects comparable earnings per share to grow at least 11%, up from its prior forecast of an increase in the range of 9% to 10%. The beverage giant also anticipates that its organic revenue will climb at least 5%, a slight increase from its previous outlook of approximately 5% growth.
Coke reported third-quarter net income attributable to shareholders of $4.01 billion, or 93 cents per share, up from $3.7 billion, or 86 cents per share, a year earlier.
Excluding transaction gains and other items, Coke earned 91 cents per share.
Net sales rose 7% to $13.4 billion. Coke's organic revenue, which strips out acquisitions, divestitures and foreign currency, also rose 7% in the quarter.
The company's unit case volume increased 5%, helped by higher demand outside of North America. Coke's home market reported flat volume.
In recent quarters, Coke executives have said North American shoppers are under pressure, stretched thin by inflation and economic uncertainty. But the beverage giant has also said consumers are still buying its drinks, from premium brands like Fairlife to its namesake soda.
Globally, Coke's sparkling soft drinks business saw volume increase 5% during the quarter, lifted by growth of Coke, Coke Zero Sugar and Diet Coke.
Coke's water, sports, coffee and tea division also saw volume climb by 5%. Increased demand for its water, which includes its premium Smartwater brand, fueled the growth. Demand for its tea and coffee was flat, while sports drinks declined.
The company's juice, value-added dairy and plant-based beverages business reported flat volume, despite growth in brands like Fairlife and Minute Maid.
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