U.S. beverage giant Coca-Cola (KO) has raised its full-year guidance after its third-quarter
earnings blew past Wall Street estimates.
Atlanta-based Coca-Cola said it managed to post better-than-expected Q3 results by raising
prices to offset its own elevated costs.
The company announced earnings per share of $0.69 U.S. versus $0.64 U.S. that was forecast
by analysts. Revenue totaled $11.05 billion U.S. compared to $10.52 billion U.S. that was
anticipated.
Coke also reported that its organic revenue grew 16% in the July through September period,
driven by higher prices across its beverage portfolio.
The company’s “sparkling soft drinks” segment, which includes Coca-Cola, reported volume
growth of 3% during the third quarter. Coke Zero Sugar was a standout, with its volume rising
11%. The hydration, sports and coffee division saw volume growth of 5%.
Coca-Cola is appealing to price conscious consumers through product offerings such as value
packs that have fewer cans or smaller bottles.
For 2022, Coca-Cola now expects earnings per share growth of 6% to 7%, up from a previous
growth forecast of 5% to 6%.
The company also raised its outlook for organic revenue growth this year to 14% to 15% from a
previous range of 12% to 13%.
Coca-Cola’s stock is down less than 1% this year and trading at $58.95 U.S. per share.
