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.
Sign up for Kiplinger’s Free E-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
-
Trump Admin. Kills Support for NYC Congestion Pricing Despite BenefitsState Policy The toll program enacted in January charges commuters $9 if they enter Manhattan’s lower district during peak hours.
-
Stock Market Today: Trump Tariff Threats Keep Pressure on StocksThe president warned of 25% tariffs being levied on automobiles, semiconductor chips and pharmaceutical imports.
-
Stock Market Today: Trump Tariff Threats Keep Pressure on Stocks
The president warned of 25% tariffs being levied on automobiles, semiconductor chips and pharmaceutical imports.
-
7 of Warren Buffett's Biggest MissesWarren Buffett's investing wins are highly regarded across Wall Street, but no one can bat a thousand. Here are some of Buffett's biggest misses.
-
Why Toll Brothers Stock Is Falling After EarningsToll Brothers stock is lower Wednesday after the homebuilder missed expectations for its first quarter. Here's what you need to know.
-
Why Bumble Stock Is Spiraling After EarningsBumble stock is sinking Wednesday as the online dating platform's weak guidance offsets a revenue beat. Here's what you need to know.
-
Etsy Stock Sinks on Revenue Miss: What to KnowEtsy stock is notably lower Wednesday after the online retailer fell short of revenue expectations for the key holiday quarter.
-
Rethinking Income When You Retire: No Paycheck, No ProblemWhen you retire, you'll need to adjust to the reality of depending on assets instead of a regular paycheck. For that, you'll need a new financial strategy.
-
How to Support Your Parents Without Derailing Your FinancesPutting your aging parents' financial house in order can give you a clearer picture of where they need support and how to balance that with your own plans.
-
Stock Market Today: Stocks Gain to Start the Short WeekStocks struggled for direction Tuesday, though Intel made a beeline higher on M&A buzz.
