Beverage industry behemoth The Coca-Cola Company (KO) defied macroeconomic headwinds and delivered impressive third-quarter results. The company’s top line of $11.1 billion beat analysts’ estimate by…
5.7%. Its EPS of $0.69 surpassed the consensus estimate by 8.3%.
The company expects to keep this momentum going and has raised its growth expectations. For the fiscal year 2022, KO expects to deliver an organic (non-GAAP) revenue growth of 14% to 15%. It also expects to deliver comparable EPS (non-GAAP) growth of 6% to 7%.
The stock is down marginally year-to-date but has gained 4.8% over the past year. It has also gained 5% over the past month to close its last trading session at $58.81.
Here are the factors that might influence KO’s performance in the near term:
Solid Recent Financials
For the fiscal third quarter ended September 30, KO’s non-GAAP net operating revenues increased 10% year-over-year to $11.05 billion. Its non-GAAP gross profit rose 6.5% from the prior-year quarter to $6.54 billion. Non-GAAP net income and non-GAAP net income per share improved 6.7% and 6.2% from the prior-year period to $3.01 billion and $0.69, respectively.
Robust Profitability
KO’s trailing-12-month EBIT margin, net income margin, and levered FCF margin of 28.62%, 23.44%, and 22.32% are 219.4%, 397.6%, and 631.8% higher than the…
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