Shares of Coca-Cola (NYSE:KO) are up more than 2% in premarket trading Monday after the company’s Q1 EPS report beat analyst expectations.
Coca-Cola reported comparable EPS of 64c, topping the consensus estimates of 58c per share. Adjusted operating revenue came in at $10.50 billion, up 16% YoY, and above analyst estimates of $9.84 billion. Adjusted organic revenue rose by 18%, while analysts were expecting 9.46% growth.
The company reported unit case volume growth of 8%. Unit case volume for nutrition, juice, dairy, and plant-based beverages rose by 12%. Hydration, sports, coffee, and tea unit case volume grew by 10%. Coca-Cola reported a change in concentrate sales of +11%, compared to the analyst expectations of +2.82%.
For FY, the beverage company expects adjusted organic revenue growth in the range of 7% to 8%, compared to the consensus estimates of +8.02%.
It expects comparable EPS to grow 5-6% for the year and projects capital expenditure of roughly $1.5 billion.
KO expects commodity price inflation in "mid-single-digit percentages." The impact of Russia’s invasion of Ukraine is estimated to be around 1% to unit case volume, and about 1-2% to net revenue, as well as 4c to comparable EPS.
Goldman Sachs) analyst Bonnie Herzog said KO “delivered strong performance on both the top & bottom lines.”
“Investor expectations for KO heading into results today were high, and KO's Q1 print likely exceeded these expectations… Based on investor conversations ahead of the print today, most investors were expecting a strong topline beat, but believed KO would lower its FY22 guidance given f/x headwinds, macro issues and cost inflation pressures. Therefore, we believe today's results and outlook will be viewed favorably especially as guidance was maintained. We expect the stock to outperform the market today.”
By Senad Karaahmetovic