Coco-Cola (KO:NYE) Beats Earnings Estimates-Analyst Target $66

Coke Beats Estimates

Coca-Cola has beaten analyst expectations for the first quarter of 2023, with its revenue and profits surpassing estimates. The company’s soda prices rose by 11%, while unit case volumes increased by 3%, resulting in strong financial performance in the first quarter.

Despite the global supply chain disruptions that have recently occurred due macro economic and other global issues, Coca-Cola has been able to combat the high commodity and shipping costs through raising prices. The company had already announced in February that it would raise soda prices further in 2023 to address stubbornly high costs, albeit at a slower pace than PepsiCo, which hit a pause on price hikes.

Coca-Cola has been able to raise prices without experiencing any significant pushback from consumers, given its near domination of the global carbonated drinks market. This has allowed it to pass on the steep commodity and raw material costs to consumers, which is a trend observed in several consumer goods companies.

The average price of 192 ounces of Coca-Cola’s soda in the US rose to $10.55 in 2023, up from $8.03 in 2021. The company’s first-quarter operating margin was 30.7%, compared to 32.5% a year earlier. The price hikes did not fully offset the impact of higher operating costs, an increase in marketing spending, investments, and a stronger dollar.

The company’s first-quarter revenue rose by approximately 5% to $10.98bn, which exceeded the expected revenue of $10.8bn, according to Refinitiv data. Adjusted earnings came in at 68 cents per share, compared to the estimated earnings of 6 cents.

Coca-Cola’s strong financial performance in the first quarter of 2023 indicates that the company has been successful in managing the challenges posed by the pandemic and global supply chain disruptions. The company’s ability to pass on the costs to consumers through price increases is a testament to its brand strength and market dominance. With its promising start to the year, Coca-Cola looks set to continue to be a leader in the global carbonated drinks market.

KO Stock Forecast & Analysis

The average analyst target price for The Coca-Cola Company over the next 12 months is USD 66.52, and the average analyst rating is Strong Buy. Stock Target Advisor’s analysis is Slightly Bullish, with 9 positive signals and 6 negative signals. The current stock price is USD 64.05, with a +1.59% change over the past week, a +6.89% change over the past month, and a -1.84% change over the past year.

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