Coca-Cola jumps after revenue impresses and water sales run laps around soda
- Coca-Cola shares jumped early Tuesday after the company reported first-quarter revenue that topped Wall Street estimates.
- The beverage company's GAAP earnings fell short of analysts' expectations.
- Watch Coca-Cola trade live.
Coca-Cola reported first-quarter sales and adjusted earnings Tuesday morning that topped expectations, helped in part by robust water and sports drinks sales. Shares were higher by 3% ahead of the opening bell, trading near $49 apiece.
Water, enhanced water, and sports drinks sales under the Coca-Cola umbrella jumped 6%, compared with a 1% rise in sparkling soft drinks like the original Coca-Cola and Coca-Cola Zero Sugar, the company said. Coffee and tea sales were flat.The iconic beverage giant and its competitors have grappled with consumers' shifting away from soft drinks and toward healthier options in recent years.
Here's what Coca-Cola reported for the first-quarter, compared with what analysts polled by Bloomberg were expecting.
- Adjusted earnings per share (EPS): $0.48 versus $0.46 expected.
- GAAP earnings per share (EPS): $0.38 versus $0.46 expected.
- Revenue: $8.02 billion versus $7.9 billion.
The company's full-year guidance was largely unchanged, holding its 4% organic revenue growth forecast.
"Overall, we are impressed with KO's ability to deliver a strong topline, suggesting that its refranchising & portfolio transformation are paying off," Wells Fargo analysts led by Bonnie Herzog wrote in a note to clients on Tuesday morning.
Coca-Cola shares were flat this year through Monday.
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