We're paying a premium for Coke
The company, whose flagship product is carbonated soft drink Coca-Cola, said average selling prices for its products rose 9 percent in the third quarter and total unit-pack volume increased 2 percent. Third-quarter net sales of $11.91 billion. Third quarter sales of $11.44 billion exceeded expectations of $11.44 billion. USD. Adjusted earnings came in at 74 cents per share, also beating expectations of 69 cents per share, according to LSEG data.
Positive expectations
The company raised its annual underlying earnings forecast, which it had originally estimated to grow at 5-6 percent, and has now revised that forecast to 7-8 percent. It also raised its forecast for annual organic revenue growth to 10 to 11 percent from the original 8 to 9 percent.[1]
The stock maintains its growth curve
Although the company's stock has written down more than 8 percent of its value over the past year, it is in the green over the long term.* Looking at the 5-year performance, we can see that the value has increased from $49.80 per share to $55.5 per share, an increase of over 11 percent. Looking at the 10-year trend, we even see an appreciation of 50 percent.*
Chart: Coca- Cola's value development over the last 10 years. (Source: Investing.com)
Pepsi has also performed well
Rival PepsiCo, which also beat experts' expectations, reported that it plans to raise prices next year as consumers continue to buy products labeled as "affordable luxury" in a time of higher inflation, reflected in both more expensive food and a higher cost of living.
Olivia Lacenova, principal analyst at Wonderinterest Trading Ltd.
* Past performance is no guarantee of future results.
[1] Forward-looking statements are based on assumptions and current expectations, which may be inaccurate, or on the current economic environment, which may change. Such statements are not guarantees of future performance. They involve risks and other uncertainties that are difficult to predict. Results may differ materially from those expressed or implied by any forward-looking statements.
