Positive Earnings Report
Coca-Cola’s stock experienced a notable uptick today, rising over 3% after the company reported stronger-than-expected profits for the third quarter. Despite slightly lower-than-anticipated revenue figures, CEO James Quincey described the business landscape as ‘challenging.’
Financial Highlights
The Atlanta-based beverage giant announced adjusted earnings of $0.82 per share for the third quarter, with revenue reaching $12.46 billion—a 5% increase from the previous year. Analysts from Visible Alpha had predicted earnings of $0.78 per share and revenue of $12.52 billion.
Stock Performance
Today’s stock increase extends a rally that began towards the end of last month. Although the stock is still below 2025 highs, those levels are within sight; shares recently traded around $71, whereas the analyst mean stands at approximately $79.
Market Trends
Unit case volumes overall grew by 1%, though results varied across regions—remaining flat in North America and Latin America, while declining by 1% in the Asia Pacific. Sparkling beverages held steady, bolstered by a 14% growth in Coca-Cola Zero Sugar. Other categories, including water, sports drinks, coffee, and tea, increased by 3%. However, juice, value-added dairy, and plant-based drinks saw a 3% decline.
Future Outlook
Quincey acknowledged the challenging environment but expressed confidence in meeting the company’s guidance for 2025 while striving to achieve long-term goals. Coca-Cola anticipates organic revenue growth of 5% to 6% for the full year.
Strategic Moves
In a strategic shift, Coca-Cola announced a $2.6 billion agreement to sell a majority stake in its largest bottler in Africa, following a previous decision to sell a 40% interest in a bottler in India.
Year-to-Date Performance
With today’s gains, Coca-Cola’s shares have risen approximately 13% since the start of the year.
