JPM says Coca-Cola's rising forecasts are better than expected

Coca-Cola (NYSE:KO) reported better-than-expected third-quarter earnings and raised its full-year forecast, sending its shares up more than 3% on Tuesday.

Coca-Cola (KO) posted Q3 revenue of $11.1 billion and earnings per share (EPS) of $0.69, beating estimates for revenue of $10.53 billion and EPS of $0.64. Coca-Cola announced that unit case volume increased by 4% year-on-year. Coca-Cola increased its full-year adjusted organic revenue from +12% to +13% to +14% to +15%. Adjusted organic revenue is expected between +14% and +15%, exceeding the consensus of +13.4%. The company expects comparable EPS to increase between +6% and +7%. Goldman Sachs analysts said KO delivered better-than-expected results despite the high bar. "Healthy underlying demand drove an impressive increase in results. In addition, given the strength in the quarter, KO raised its organic sales growth and EPS neutral FX guidance for fiscal 2022 and provided initial guidance for Fiscal 2023 FX impact. We believe KO's results today are good enough to satisfy investors given the challenging operating environment, but FX impacts remain a concern going forward." JPMorgan analysts said the results came in strong in line with investors' expectations. The analyst wrote, "While 4Q was felt to be below Wall Street expectations, we think the small EPS increase in 2022 was better than expected and management is likely being somewhat conservative… Demand trends remain resilient and demonstrate the attractiveness of KO's brand equity and resilient categories in the face of macro uncertainty." Source: investing.com Follow Global Economic Developments on Social Media! Click here to follow Ieconomy official Facebook account! Click here to follow Ieconomy official Instagram account! Click here to follow Ieconomy official Twitter account!