Why Are Coca-Cola Shares Trading Higher Today?

Coca-Cola Co KO reported third-quarter FY21 sales growth of 16% year-on-year, to $10.04 billion, beating the analyst consensus of $9.75 billion.
Unit case volume grew 6% in the quarter, resulting in volume ahead of 2019, driven by the ongoing recovery in markets as the coronavirus-related uncertainty is starting to decrease.
Revenue performance included 8% growth in concentrate sales and 6% growth in price/mix.
The operating margin expanded 230 basis points to 28.9%, while the comparable operating margin contracted 40 basis points to 30%. Operating income for the quarter rose 26% Y/Y.
Adjusted EPS of $0.65 beat the analyst consensus of $0.58.
The cash flow generated from operating activities for the nine months was $9.2 billion. It held $14.9 billion in cash and equivalents.
Outlook: Coca-Cola sees FY21 organic revenue growth of 13% - 14% (prior outlook 12% - 14%). It expects FY21 comparable EPS growth of 15% - 17% (prior view 13% - 15%).
For FY22, the company expects elevated commodity inflation and comparable cost of goods sold (non-GAAP) to include a mid-single-digit percentage commodity headwind.
Price action: KO shares are trading higher by 2.99% at $56.10 in premarket on the last check Wednesday.
Photo by Kenny Holmes from Pixabay

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