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published in Blogs
Oct 26, 2022
Coca-Cola (KO, $59.40) tops Q3 earnings expectations; raises full-year outlook

Coca-Cola (KO, $59.40) tops Q3 earnings expectations; raises full-year outlook

Coca-Cola posted its third quarter earnings that surpassed analysts’ expectations. The beverage maker also boosted its full-year outlook, on expectations of its strategy of hiking prices coupled with more affordable options to bolster sales growth.

Coca-Cola’s adjusted earnings for the third quarter came in at 69 cents, well above the 64 cents expected by analysts (based on Refinitiv poll).

Revenue (adjusted) rose +10% from the year-ago quarter to $11.05 billion, also exceeding the $10.52 billion expected. Unit case volume (which excludes the impact of currency and price changes) was up +4%.

Looking ahead, Coke expects adjusted earnings per share growth of 6% to 7% for 2022,, up from its prior forecast of 5% to 6%. The company now projects its organic revenue growth in the range of 14% to 15%, up from its prior forecast of 12% to 13%.

For the fourth quarter, the company is anticipating foreign currency to affect its adjusted net sales by 8% and adjusted earnings per share by 9%, including the impact of hedged positions.

According to Coke CEO James Quincey, challenging economic conditions will likely persist for the next six to 12 months, and that the company’s  product innovation next year will focus more on packaging towards creating more affordable options for consumers (as reported in CNBC).

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