Coca-Cola increases the revenue forecast after income strokes, and sends shares higher
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On Tuesday, Coca-Cola reported quarterly earnings and revenues that hit analysts' expectations, driven by the sale of its name brand.
The shares in the company jumped 1.5% in premarket trading.
"Our strategy of transforming as a total beverage company has enabled us to continue winning in a growing and vibrant industry," said CEO James Quincey in a statement.
This is what the company reported compared to what Wall Street expected, based on a survey by Refinitiv analysts:
- Earnings per share: 63 cents, adjusted, versus 61[ads1] cents expected
- Revenue: $ 10.00 billion $ 9.99 billion expected
The drink giant reported second-quarter financial income of $ 2.61 billion, or $ 0.61 per share, up from $ 2.32 billion, or $ 0.64 per share the year before.
Excluded goods earned Coke 63 cents per share, peaking 61 cents per share expected by analysts examined by Refinitiv.
Net sales increased 6% to $ 10.00 billion, and almost hit expectations at $ 9.99 billion. Coke raised its expectations of full-year revenue and now expects organic revenue growth of 5%.
It repeated its tax revenue forecast for 2019 and said earnings per share could fall or rise by 1%.
The company attributed its strong quarterly development to 4% volume and transaction growth in Coke's name brand. Our Zero Sugar line again showed double-digit volume growth across the globe.
During the second quarter, Coke joined Netflix to bring back New Coke to promote the third season of "Stranger Things" and rolled out Coca-Cola Plus Coffee in several markets, as the company expanded into different types of caffeine-rich drinks.
Coke also rolled out its first energy drink under the Coca-Cola brand during the quarter. Coca-Cola Energy uses caffeine from naturally derived sources and is available in 14 countries, including Japan and South Africa. At the end of 2019, the drinking giant plans to bring it to Mexico, Brazil and four countries. Coke has not shared any plans to sell Coca-Cola Energy in the US yet since an arbitrator in July decided it could steer the energy drink under the contract with Monster Beverage.
The company has also launched its first product line with Costa Coffee since it bought the British coffee brand for $ 5.1 billion. The canned coffee drink contains double images with espresso and will be launched in Poland and China by the end of the year. There are no plans to introduce the ready-to-drink coffee drinks in the United States
This story is evolving. Please check for updates.
