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Coca-Cola on Tuesday reported quarterly earnings and revenue that beat analysts’ expectations, driven by sales of its namesake soda brand.
Shares of the company jumped 2.9% in premarket trading.
“Our strategy to transform as a total beverage company has allowed us to continue to win in a growing and vibrant industry,” CEO James Quincey said in a statement.
Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:
- Earnings per share: 63 cents, adjusted, vs. 61 cents expected
- Revenue: $10.00 billion vs. $9.99 billion expected
The beverage giant reported fiscal second-quarter net income of $2.61 billion, or 61 cents per share, up from $2.32 billion, or 54 cents per share, a year earlier.
Excluding items, Coke earned 63 cents per share, topping the 61 cents per share expected by analysts surveyed by Refinitiv.
Net sales rose 6% to $10.00 billion, narrowly beating expectations of $9.99 billion. Coke raised its full-year outlook for revenue and now expects organic revenue growth of 5%.
It reiterated its fiscal 2019 earnings forecast, saying that earnings per share could fall or rise by 1%.
The company attributed its strong performance during the quarter to 4% volume and transaction growth in Coke’s namesake brand. Its Zero Sugar line once again saw double-digit volume growth across the globe.
During its second quarter, Coke partnered with Netflix to bring back New Coke to promote the third season of “Stranger Things” and rolled out Coca-Cola Plus Coffee in more markets, as the company expands into different kinds of caffeinated drinks.
Coke also rolled out its first energy drink under the Coca-Cola brand during the quarter. Coca-Cola Energy uses caffeine from naturally derived sources and is available in 14 countries, including Japan and South Africa. By the end of 2019, the beverage giant plans to bring it to Mexico, Brazil and four more countries. Coke has not shared any plans yet to sell Coca-Cola Energy in the U.S. since an arbitrator ruled in July that it can peddle the energy drink under the terms of its contract with Monster Beverage.
The company has also launched its first product line with Costa Coffee since it acquired the U.K. coffee brand for $5.1 billion. The canned coffee drinks contain double shots of espresso and will launch in Poland and China by the end of the year. There are no plans to introduce the ready-to-drink coffee beverages in the U.S.
Net sales in the company’s Asia Pacific and Europe, Middle East and Africa segments were flat for the quarter, largely due to the impact of currency changes. Revenue in Latin America fell 6% because of a 13% currency headwind, although Coke said it had strong performance in Mexico and Brazil.
North America was the only region to reported net revenue growth. Pricing hikes and packaging initiatives helped propel sales growth of 2%. The company said that it saw strong performance from soda, water, sports drinks, juices and dairy and plant-based beverages.
This story is developing. Please check back for updates.