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Coca-Cola earnings, revenue beats Q3 consensus estimates

Published 10/23/2024, 07:11 AM
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Investing.com -- Coca-Cola reported better-than-expected third-quarter results and slightly lifted its full-year organic revenue growth forecast. However, the stock declined by over 2% in early trading on Wednesday.

The beverage giant posted adjusted earnings per share of $0.77, topping analyst estimates of $0.75. Revenue came in at $11.9 billion, surpassing expectations of $11.63 billion.

Organic revenue, which excludes currency impacts and acquisitions, grew 9% YoY, driven by 10% growth in price/mix. However, global unit case volume declined 1% as growth in some markets was offset by declines in China, Mexico and Türkiye.

"Our business continues to demonstrate resilience in the face of a dynamic external environment," said James Quincey, Chairman and CEO of The Coca-Cola Company (NYSE:KO).

For the full year 2024, Coca-Cola expects organic revenue growth of approximately 10%, at the high end of the previously forecasted range of 9% to 10%. The company cited strong pricing and the impact of high inflation in some markets.

However, Coca-Cola warned of currency headwinds, projecting a 5% hit to comparable net revenues and a 9% impact on comparable EPS growth for 2024.

The company maintained its outlook for 5-6% comparable EPS growth for the full year versus $2.69 in 2023.

Reacting to the report, analysts at Citi said that they believe the third-quarter results confirm their thesis of above-peer OSG at KO, with strong pricing power. The bank expects "improving volume growth in Q4 (with 2 extra days), making KO valuation extremely attractive in our view."

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