Shares of Coca-Cola (KO) don’t seem to know the meaning of down.
Since early 2019, the stock has exploded from $44, gapping to $53 just this morning on impressive earnings. Not only did the company beat with EPS of 63 cents, as compared to expectations for 61 cents, revenue was up to $10 billion. Revenue beat $9.9 billion estimates.
It also raised its full-year outlook for revenue and said it expects organic revenue growth of 5%. It did reiterate its fiscal 2018 EPS forecast, saying that could fall or rise by 1%.
“Our strategy to transform as a total beverage company has allowed us to continue to win in a growing and vibrant industry,” CEO James Quincey said, as quoted by CNBC.
Sagging Demand for Sugary Drinks Didn’t Hurt
While we’ve seen softer demand for sugary drinks, the company rolled out Coke Zero Sugar, and other new flavors, which did help revive its core soda business, where volume rose 4%. Volumes of Coke Zero Sugar were up 10% around the globe, and has now logged the seventh straight quarter of double-digit volume growth.
In addition, Coca-Cola is pushing deeper into the canned coffee market after its acquisition of Costa for $5.1 billion. Also, Coca-Cola HBC just said it would launch Costa Coffee in at least 10 markets, including Russia, Bulgaria, Greece, and Poland.