Iconic beverage-making giant Coca-Cola (KO - Get Report) on Tuesday reported second-quarter earnings and sales that beat analysts' forecasts amid ongoing demand for its water, sports drinks and namesake zero-sugar beverages.
Coca-Cola reported second-quarter earnings of $2.6 billion, or 63 cents a share on an adjusted basis, compared to $2.3 billion, or 54 cents a share, in the comparable year-earlier quarter. Analysts polled by FactSet had been expecting earnings of 62 cents a share. Sales came in at $10 billion vs. the $9.9 billion expected by analysts polled by FactSet.
While Coke has been selling more of its water, sports drinks and fizzy soda beverages, the company has been anticipating slowing sales growth this year amid macroeconomic uncertainty and volatility in some of its overseas markets.
"We delivered another solid quarter, with broad-based organic revenue growth, underlying margin expansion and improving cash flow trends." - $KO CFO John Murphy: https://t.co/Cwrrz8Iypk pic.twitter.com/lGKo028YBJ— The Coca-Cola Co. (@CocaColaCo) July 23, 2019
The company provided a semi-updated full-year outlook, forecasting earnings per share that could fall or rise by 1% and organic revenue, which excludes currency adjustments, acquisitions and product-line divestitures, to rise by 5% instead of 4% as forecast in April.
The company also raised its guidance for operating income on a currency neutral basis, now expecting it to increase between 11% and 12% instead of between 10% and 11%.
Coke in recent years has expanded well beyond its iconic brown carbonated drinks, delving into both the hydrating and non-hydrating world of beverages, including its purchase of British coffee chain Costa, which it plans to produce coffee-infused carbonated drinks with.
Shares of Coca Cola bubbled higher, rising more than 5% to $53.91 in mid-day trading on the New York Stock Exchange after closing Monday at $51.22.