Coca-Cola tops earnings estimates, hikes full-year outlook as demand for drinks climbs - CNBC

What the report says

CNBC reported that Coca-Cola beat Wall Street expectations for its second quarter and lifted its full-year outlook, as demand for its beverages rose across all reporting segments. The company posted adjusted earnings of 97 cents a share, above the 93 cents expected by analysts surveyed by LSEG, and revenue of $13.38 billion, compared with expectations of $13.16 billion. Net income rose to $4.43 billion, or $1.03 per share, from $3.81 billion, or 89 cents per share, a year earlier.

The beverage maker now expects comparable earnings per share to grow 9% to 10% for the year, up from its previous 8% to 9% forecast. It also projected organic revenue growth of about 5%, the upper end of its earlier range. CNBC said Coca-Cola shares rose more than 7% in morning trading Tuesday and reached a record high; the stock had already gained 19% this year, ahead of the S&P 500.

Coca-Cola’s organic revenue increased 6% in the quarter, while global unit case volume grew 5%, a measure CNBC noted better reflects demand because it excludes pricing. North American volume rose 3%, suggesting resilience even as some consumers face inflation, geopolitical uncertainty and higher fuel costs. CEO Henrique Braun told CNBC the company benefited from World Cup marketing, including visibility for Powerade during hydration breaks.

By category, water, sports, coffee and tea led with 6% volume growth, though coffee was the exception within that group. Sparkling soft drinks rose 4%, with Coca-Cola Zero Sugar up 16% and Diet Coke/Coca-Cola Light up 7%. The results contrast with pressure reported by rival PepsiCo in U.S. snacks and drinks.