Coca-Cola beat earnings and revenue forecasts. Shares jumped almost 3%

Coca-Cola's third-quarter results beat analysts' expectations thanks to robust demand for its branded carbonated beverages and Zero Sugar lineup, CNBC reports.

Adjusted earnings per share amounted to 82 cents against the expected 78 cents, and revenues amounted to $12.46 billion against analysts' forecast of $12.39 billion, the channel notes with reference to LSEG data. Revenue grew 5% year-on-year and 6% in organic terms (excluding currency fluctuations and corporate transactions) compared to the same period in 2024.

Coca-Cola's sales per unit case volume grew 1% after a decline in the previous quarter. This figure excludes the impact of price and currency factors, reflecting real consumer demand, CNBC explained. At the same time, sales volumes in North and Latin America remained at the same level as the previous quarter. The largest growth was recorded in the segment of water and sports drinks, coffee and tea: sales of the former increased by 3%, the latter - by 2%.

The company also reiterated its outlook for 2025: it expects adjusted earnings per share growth of 3% and organic revenue growth of 5-6%. In 2026, Coca-Cola forecasts a moderately positive impact of currency fluctuations on revenue and earnings. A full outlook for next year will be provided in the fourth-quarter report.

In the report, Coca-Cola acknowledged that demand for its products remains sluggish, Reuters emphasized. The company noted that amid inflation and economic uncertainty, low-income consumers in the U.S. have started to buy fewer drinks, although the manufacturer is trying to keep their interest through more affordable formats and price offers. For example, Coca-Cola intends to start selling mini cans priced at less than $2. In addition, the company plans to bring its signature cane sugar-based soda to the U.S. market this fall as part of the Make America Healthy Again initiative backed by Donald Trump's administration, despite analysts' concerns about rising production costs.

Shares of Coca-Cola at the pre-market trading on October 21 jumped by about 3% - the price reached $71. Since the beginning of the year, the market value of the company has grown by 10%. By comparison, the market value of its main competitor, PepsiCo, has gained only 1% over the same period.

The vast majority of analysts - 86% - advise investors to buy Coca-Cola securities (Buy and Overweight ratings), according to MarketWatch data. The rest are neutral with a Hold rating and no recommendations to sell. Wall Street's average target price of $77.8 suggests Coca-Cola's market value is up another 14% from the last closing level.

This article was AI-translated and verified by a human editor