Coca-Cola Q3 Earnings, Revenue Top Expectations

Coca-Cola (NYSE: KO) topped analyst consensus expectations when it reported third-quarter earnings before the open on Tuesday.

The beverages powerhouse reported adjusted earnings of $0.74 per share on revenue of $12bn. Earnings rose 7% year-on-year, while revenue grew by 8% compared to last year.

Analysts expected Coca-Cola to report EPS of $0.69 and revenue of $11.4 billion for the quarter.

Coca-Cola CEO James Quincy commented:  “We delivered an overall solid quarter and are raising our full-year topline and bottom-line guidance in light of our year-to-date performance.”

“Our leading portfolio of brands, coupled with an aligned and motivated system, positions us to win in the marketplace today while also laying the groundwork for the long term,” he added.

For the full year, KO expects to deliver adjusted organic revenue growth of 10% to 11%.

Coca-Cola shares are up more than 2% premarket on Tuesday following the report. It is currently trading above the $55 per share mark. However, the stock is down almost 15% this year.

Following the report on Tuesday, analysts at investment bank Wells Fargo raised their price target for KO to $62 from $60, keeping an Overweight rating on the shares. The firm believes Coca-Cola's third quarter was more than just another quarter, with its “all-weather” model coming through with an earnings beat and raise.

Elsewhere, Evercore ISI lowered its Cocoa-Cola share price target to $67 from $70, also maintaining a bullish rating of Outperform on the shares. The firm said Coca-Cola's report delivered a “high-quality 3Q beat,” and they continue to feel good about Coca-Cola's sales growth.

After the more than 2% gain on Tuesday, KO climbed a further 0.86% during Wednesday's session, trading just above the $56 mark.