:max_bytes(150000):strip_icc()/GettyImages-2206414146-93d4b45c2bf4437bac8fd26bfce0ad44.jpg "Coca-Cola Earnings Beat Expectations. The Stock Is Rising Toward 2025 Highs.")
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Key Takeaways
- Coca-Cola shares rose Tuesday after the company posted better-than-expected quarterly profits. The company plans to sell a majority stake in the largest Coca-Cola bottler in Africa.
- The stock’s climb extends an upward move that started late last month and has the shares within view of 2025 highs and Wall Street’s consensus target.
There’s some fizz in Coca-Cola today.
Shares of Coca-Cola (KO) were recently up more than 3% after the beverage giant posted stronger-than-expected third-quarter profit. The shares rose even through revenue came up slightly short in what CEO James Quincey called a “challenging” environment.
The Atlanta-based company reported Q3 adjusted earnings of $0.82 per share on revenue that increased 5% year-over-year to $12.46 billion. Analysts surveyed by Visible Alpha had expected $0.78 and $12.52 billion, respectively.
The morning’s move higher has the shares extending an upward run that started late last month. The stock remains off 2025 highs, though those levels are back in view. (The stock recently traded near $71; Visible Alpha’s analyst mean is around $79.)
Why This Is Significant
Coca-Cola’s strong earnings despite weaker volumes reflect how many global brands are relying on price increases and product shifts to offset slowing consumer demand. In Coca-Cola’s case, that has executives confident that they can meet their targets despite what they call a “challenging” backdrop.
Unit case volumes were up 1% overall but flat in North America and Latin America, and fell 1% in the Asia Pacific region. Sparkling soft drink volumes were even, aided by 14% growth in Coca-Cola Zero Sugar. Water, sports, coffee, and tea grew 3%, but juice, value-added dairy, and plant-based beverages declined 3%.
Quincey said that “the overall environment has continued to be challenging,” but added that “we’re confident we can deliver on our 2025 guidance while also working to achieve our longer-term objectives.” For the full year, the company expects 5%–6% organic revenue growth.
The company also announced a $2.6 billion deal to sell a majority stake in the largest Coca-Cola bottler in Africa, following its move last year to sell a 40% ownership stake in a bottler in India.
With today’s climb, shares are up about 13% since the start of the year.
