Beverage giant, The Coca-Cola Company (NYSE: KO) was up in pre-market trading at the time of writing on Wednesday after the company announced its second-quarter results with adjusted earnings of $0.78 per share, up by 11% year-over-year and above Street estimates of $0.72 per share.
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The company’s Q2 revenues increased by 6% year-over-year to $12 billion while organic revenues grew by 11% in Q2. Analysts were expecting revenues of $11.7 billion.
In the second quarter, Coca-Cola gained value market share in total nonalcoholic ready-to-drink (NARTD) beverages while global unit case volume was even.
James Quincey, Chairman and CEO of The Coca-Cola Company commented, “I am encouraged that our all-weather strategy, working together with our bottling partners, has delivered strong second-quarter results. We are executing efficiently and effectively on a local level, while maintaining flexibility on a global level. The strength of our first half results and the resiliency of our business give us the confidence to raise our 2023 guidance.”
Looking forward, the management expects its organic revenues to grow in the range of 8% to 9% in FY23, and comparable adjusted EPS is likely to grow year-over-year between 5% and 6%. When it comes to the third quarter, Coca-Cola’s adjusted comparable net revenues are “expected to include an approximate 2% currency headwind based on the current rates and including the impact of hedged positions, in addition to an approximate 1% headwind from acquisitions, divestitures and structural changes.” Even the adjusted comparable EPS growth is likely to include a currency headwind of around 3%.
Analysts remain bullish about KO stock with a Strong Buy consensus rating based on 13 Buys and three Holds.
