Goldman Sachs Expects Coca-Cola (KO) Stock to Outperform Today After Strong Q3 Results
- Stocks tumble on new coronavirus variant fear
- Moderna (MRNA) Shares Rally 11% on 'Nu' Concerns, Analyst Sees mRNA Technology Adapting Much Quicker to New COVID Variant
- DiDi (DIDI) Stock Falls on Report China Seeks Delisting From US Amid Data Security Concerns
- Apple (AAPL) on Pace to Sell Over 10 Million iPhones for Black Friday - Wedbush
- Buy Tech Winners on Variant Fears - Wedbush
News and research before you hear about it on CNBC and others. Claim your 1-week free trial to StreetInsider Premium here.
Shares of Coca-Cola (NYSE: KO) are up 2.8% in pre-open Wednesday after the company reported better-than-expected Q3 results.
Coca Cola reported Q3 EPS of $0.65 to top the analyst estimate of $0.58. Revenue for the quarter came in at $10 billion versus the consensus estimate of $9.78 billion.
“Our strategic transformation is enabling us to effectively navigate a dynamic environment and emerge stronger from the pandemic,” said James Quincey, Chairman and CEO of The Coca-Cola Company.
As a result, Coca-Cola raised its FY guidance to now expect organic revenue (non-GAAP) growth of 13% to 14%, EPS (non-GAAP) growth of 15% to 17%.
“We are updating our full-year guidance to reflect another quarter of momentum in the business. While the recovery continues to be asynchronous around the world, we are investing for growth to drive long-term value for the system. Our strong system alignment and networked organization are helping us unlock enormous potential in our brands and across our markets.”
Coca-Cola also said it remains “confident in the underlying momentum in the business,” as far as the FY2022 guidance is concerned.
Goldman Sachs analyst Bonnie Herzog reiterated a Neutral rating and a $55.00 per share price target on the KO stock, but said results were “much better-than-expected” as the company delivered “strong performance on both the top & bottom lines.
“KO's topline was up a strong +14% y/y driven by strong concentrate sales and price/mix. Margins were also better than expected - especially gross margins, ultimately driving a strong EPS beat of $0.65 vs. consensus of $0.58. Importantly KO took up FY21 guidance as well as provided a high level read on FY22. Given the better-than-expected Q3 results, we expect the stock to outperform today,” the analyst said in a client note.
Shares of KO closed at $54.47 today.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- UPDATE: Nordstrom (JWN) PT Lowered to $22 at Morgan Stanley on Prospect of Cost Inflation
- Deere (DE) PT Raised to $485 at Morgan Stanley After Guidance Blows Away Expectations
- Green Impact Partners (GIP:CN) PT Lowered to Cdn$10 at RBC Capital
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS View, Earnings, Guidance
Related EntitiesGoldman Sachs, Pre Market Movers
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!