Coca-Cola hikes earnings outlook, even as it sees lackluster demand in North America — SkimNews
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- Coca-Cola raised its full-year outlook for a third straight quarter, lifting comparable EPS growth to at least 11% from 9%-10% and organic revenue growth to at least 5% from about 5%.
- Coca-Cola topped LSEG consensus estimates in fiscal Q3: adjusted EPS was 91 cents versus 88 cents expected and revenue was $13.4 billion versus $12.92 billion, while net income rose to $4.01 billion from $3.7 billion a year earlier.
- North America posted flat Coca-Cola volume, while global unit case volume rose 5% for a second straight quarter, helped by higher demand outside North America.
- John Murphy said North American volume would have grown if not for the timing of the Fourth of July holiday and a monthslong Topo Chico shortage, while calling underlying momentum “quite strong.”
- Coca-Cola’s at-home business fared better than away-from-home; the company expects continued pressure on restaurants through the rest of the year.
- Coca-Cola’s portfolio was mixed: global sparkling-soft-drink volume rose 5% on Coke, Coke Zero Sugar and Diet Coke, while the water, sports, coffee and tea division also rose 5% on stronger water demand; tea and coffee were flat and sports drinks declined.
- Coca-Cola gained market share as rival PepsiCo’s soda business struggled, although the company said Sprite still has “some work to do.”
Why it matters: International unit case volume rose 5% and Coca-Cola gained share as PepsiCo’s soda business struggled, but the stock still slipped less than 1%. Murphy also said North American volume would have grown without July 4 timing and the Topo Chico shortage, showing that reported flatness understated underlying momentum.
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