What is your preferred term for a sweet carbonated beverage?
Leading soft-drink concern Coca-Cola (KO: sentiment, chart, options) , said this morning that third-quarter net income rose 13% to $1.65 billion, or 71 cents per share. Revenue surged 19% during the latest reporting period to $7.69 billion, thanks in part to a weaker dollar and acquisitions. What's more, KO Chairman/CEO Neville Isdell observed that "this strong performance was led by our international business." Coca-Cola reportedly banks about three-quarters of its profit from overseas.
Analysts were expecting per-share earnings of 68 cents on revenue of $7.32 billion.
Drilling into the sales data, unit case volume rose 6% for the third straight quarter, as international volume rose 8% while North American volume edged up 1%. Global volume for carbonated beverages was 4% higher while the still beverages segment – including Dasani water and Powerade – saw growth of 14%.
In pre-market trading, KO shares are fractionally higher. As I noted on Monday, the shares have been in a tight consolidation phase in recent weeks after months of outperformance. This positive earnings surprise could be the impetus Coke shares need to overcome the 58 level, which has capped the stock in recent sessions.
Discuss this article:
"Gordon, I agree with your conclusion that a retest of the lows will occur before Sept expiration. Higher prices with lower volume indicates a reversal. " Respond
"Bernie, good stuff as usual. I have a different take using the same information. It's curious that we had so many 90/90 days in a relatively short period of time. Couldn't this also mean we haven't paid the price for the bubble and paper wealth we created? The sooner the bubble bursts, the better we'll be in the long run. So lets quit the Cramer bandwagon....i.e. quit begging for rate cuts and acknowledge the inflation around you...just look at healthcare and gas prices. It's therefore hard to draw parallels with the past. Hopefully, your readers aren't betting any of their hard earned money on these 90/90, 10/10 formations." Respond
"While the major indexes did rise last week, they did so on light volume, implying that institutional buyers were not buying. Moreover, as pointed out in the MM outlook, significant short term resistance levels for SPX and DJI are still intact, despite last week's run up. Consequently, I expect a retest of the Aug 15 low before Sept 18. " Respond
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