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HomeMarketCoca-Cola Offers Upbeat Earnings Outlook. The Stock Moves Up.

Coca-Cola Offers Upbeat Earnings Outlook. The Stock Moves Up.

Coca-Cola said comparable adjusted profit for 2023 is estimated to be 4% to 5% higher than for 2022.

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Justin Sullivan/Getty Images

Coca-Cola
stock rose Tuesday morning after it provided an earnings outlook for 2023 that beat estimates and delivered higher-than-anticipated revenue for the quarter, thanks to higher prices for its drinks.

The beverage seller (ticker: KO) said comparable adjusted profit for 2023 is estimated to be 4% to 5% higher than for 2022, implying as much as $2.60 per share in earnings for the full year. Analysts tracked by
FactSet
predicted $2.55 per share.

The stock moved up 1.1% to $61.27 in premarket trading on Tuesday.

Coca-Cola
delivered 45 cents per share in adjusted earnings in the fourth quarter, matching analysts’ estimates. Revenue grew by 6.7% to $10.1 billion, beating predictions of $10 billion, thanks in part to the higher price of items.

While the value of products increased by 12% in the quarter, demand was seemingly hurt, as the number of unit cases sold by the company and its bottling partners declined overall by 1% in the quarter versus a year ago.

The largest impact was recorded in the company’s Juice, value-added dairy, and plant-based categories, which include products such as Minute Maid orange juice, and Simply lemonade. Unit volumes declined 7% for the quarter, partly hurt by the company’s suspension of business in Russia.

The company’s sparkling flavors segment declined 2% for the quarter and its trademark
Coca-Cola
product matched the performance of a year-ago quarter.

Write to Karishma Vanjani at karishma.vanjani@dowjones.com

Credit: marketwatch.com

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