Coca-Cola Beats Earnings Expectations on Higher Prices
Key Points:
* Adjusted earnings per share: 55 cents (above analyst estimate of 52 cents)
* Share price increase: 3.1% in premarket trading
* Volume growth: 2%
* Price mix (average product prices) increase: 9%
Details:
Coca-Cola Co.'s (KO) profits surpassed Wall Street expectations as consumers paid elevated prices for its beverages. The company experienced strong demand for its sodas, energy drinks, and juices, despite rising inflation.
The Atlanta-based beverage giant's price-setting strategy has contributed to its financial performance, offsetting concerns about budget-conscious consumers.
For the full year, Coca-Cola anticipates adjusted earnings per share growth of 2-3% and organic sales growth of 5-6%. This forecast is slightly below analyst expectations but reflects the company's ability to navigate economic challenges.
Meanwhile, rival PepsiCo (PEP) reported lower-than-expected sales and announced plans to focus on value for consumers. However, it intends to maintain prices for some of its offerings.