Coca-Cola tops earnings estimates, hikes full-year outlook as demand for drinks climbs

Coca-Cola on Tuesday reported quarterly earnings and revenue that topped Wall Street’s estimates, fueled by higher demand for its drinks.

The company also hiked its full-year forecast. Coke is now projecting comparable earnings per share growth of 9% to 10%, up from its prior forecast of 8% to 9%. It also expects organic revenue to increase about 5%, on the high end of its earlier range of 4% to 5%.

Shares of Coke rose more than 2% in premarket trading.

Here’s what the company reported compared with what Wall Street analysts surveyed by LSEG were expecting:

• Adjusted earnings per share: 97 cents, vs. expected 93 cents
• Revenue: $13.38 billion, vs. $13.16 billion expected

Coke reported second-quarter net income of $4.43 billion, or $1.03 per share, up from $3.81 billion, or 89 cents per share, a year earlier.

Excluding asset impairments, restructuring costs and other items, the company earned 97 cents per share.

Net sales rose 7% to $13.38 billion. Coke’s organic revenue, which excludes acquisitions, divestitures and currency fluctuations, jumped 6% in the quarter.

The company’s global unit case volume increased 5%, and every one of its reporting segments saw volume growth. The metric strips out pricing to reflect demand more accurately.

The consumer environment is “dynamic,” CEO Henrique Braun said in a statement. The comment followed rival PepsiCo saying that shoppers’ budgets tightened in the second quarter, leading to weaker sales in the U.S. for its snacks and drinks.

Global oil prices have swung dramatically due to the U.S. war with Iran, leading many consumers to temper their spending. In Coke’s home market, the national average gas price hit a four-year high of $4.56 per gallon in late May.