Coca-Cola (KO) stock is trading lower Wednesday even after the soda pop maker beat top- and bottom-line expectations for its third quarter.
In the three months ended September 27, Coca-Cola's net revenue decreased 0.8% year-over-year to $11.9 billion. However, organic revenue, which excludes certain items such as acquisitions and currency, increased 9%. Meanwhile, the company said earnings per share (EPS) were up 5% from the year-ago period to 77 cents.
The results came in ahead of analysts' expectations. Wall Street was anticipating revenue of $11.6 billion and earnings of 74 cents per share, according to Yahoo Finance.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
"We are encouraged by our year-to-date performance and our system's ability to manage near-term challenges while also remaining focused on long-term growth opportunities," said Coca-Cola CEO James Quincey in a statement.
As a result of its performance in the first nine months of the year, Coca-Cola said it now anticipates organic revenue growth of approximately 10% in fiscal 2024, which is the high-end of its prior range of 9% to 10%. It added that it continues to anticipate earnings-per-share growth in the range of 5% to 6%.
Is Coca-Cola stock a buy, sell or hold?
Coca-Cola is one of the better-performing Dow Jones stocks this year, up 20% on a total return basis (price change plus dividends). And Wall Street thinks the consumer staples stock has more room to run.
According to S&P Global Market Intelligence, the average analyst target price for KO stock is $74.80, representing implied upside of about 10% to current levels. Additionally, the consensus recommendation is a Buy.
Despite this vote of confidence from Wall Street and the fact that KO is one of Warren Buffett's favorite stocks, not everyone is in the bull camp.
Indeed, financial services firm CFRA Research maintained a Hold rating on Coca-Cola after earnings and lowered its price target on the stock to $70 from $72.
"With KO shares having rebounded over the past several months to a record high in September, we maintain a Hold on valuation and headwinds from both currency and volume growth," says CFRA Research analyst Garrett Nelson.
"We thought the fact KO didn't raise guidance was a modest disappointment following the better-than-expected Q3 results," Nelson adds, which could explain the stock's post-earnings slump.
Related Content
-
Snowbirds: Avoid These 3 Sneaky Insurance IssuesBefore snowbirds depart for their winter retreat, they should check their insurance coverage for surprises that might arise, or else be on the hook for repairs.
-
Hang in There With This Value FundPatience is required for investors in the Dodge & Cox Stock Fund, but its long-term outperformance proves it's worth the wait.
-
Hang in There With This Value Fund
Patience is required for investors in the Dodge & Cox Stock Fund, but its long-term outperformance proves it's worth the wait.
-
8 Dividend Funds to Consider NowThese dividend funds deliver a diversified portfolio of dividend stocks.
-
I'm a Financial Planner: Here's How to Make the Most of Your Charitable Giving on a BudgetMaximizing the charitable donations you plan to make this year can help your financial plan stay on track and help give the most to the causes you care about.
-
I'm a Wealth Planner: These 3 Steps Can See You and Your Heirs Through a Wealth TransferBoth givers and receivers need to be seriously strategic about communicating, understanding tax efficiency and leveraging smart money moves.
-
Dow Adds 314 Points to Thanksgiving Rally: Stock Market TodayInvestors, traders and speculators enjoy the best Thanksgiving Week gains for the major stock market indexes in more than a decade.
-
Unwrapping Your Estate Plan for Your Kids: A Gift That'll Keep Giving Long After the HolidaysThe holidays offer families a perfect opportunity to discuss important, often difficult topics like long-term care, estate plans and legacy.
-
5 Ways to Teach Your Kids About Giving Back, From a Financial PlannerTeaching kids generosity goes beyond simple rules and can involve fun, practical strategies, such as letting them lead giving, volunteering together and more.
-
I'm a Financial Planner: Here's How You Can Use AI to Improve Your FinancesApps can help with budgeting, saving and investing, financial coaching and debt management. But providing your personal information can also raise your risks.
