Coca-Cola hikes FY guidance, Q3 earnings stronger than expected

(Sharecast News) - CocaCola lifted its fullyear guidance for the third consecutive quarter on Tuesday after delivering strongerthanexpected thirdquarter earnings, even as demand in its North American home market remained flat.

The drinks giant now expects comparable earnings per share growth of at least 11%, up from its prior 9% to 10% range, and sees organic revenue rising 5% or more, a slight improvement on earlier forecasts.

For the third quarter, adjusted earnings came in at $0.91 a share, ahead of the $0.88 consensus, while net sales rose 7% to $13.4bn and net income attributable to shareholders increased to $4.01bn, up from $3.7bn a year earlier. Organic revenues also climbed 7%, helped by stronger international demand.

Global unit case volume rose 5% for the second straight quarter, driven by growth outside North America, and Coke said US volumes would have been higher were it not for the timing of the Fourth of July holiday and a prolonged shortage of its Topo Chico sparkling water brand.

Chief financial officer John Murphy said underlying momentum remained firm, with consumers across income levels continuing to prioritise value.

Water, sports, coffee and tea volumes collectively rose 5%, supported by demand for premium brands such as Smartwater, while juice, dairy and plantbased drinks were broadly flat, despite growth in Fairlife and Minute Maid.

As of 1315 GMT, Coca-Cola shares were up 1.62% at $91.05 each.

Reporting by Iain Gilbert at Sharecast.com