The beverage company reported better-than-expected first-quarter earnings Tuesday morning. The company's worldwide volume and sales continues to grow, and it persists in its efforts to cut costs and use its global presence to take advantage of lower commodities prices globally.
The company's outlook remains solid, and Coca-Cola is still the leader in the soft drink industry.
"Coca-Cola's volume growth was very strong this quarter and despite commodity pressures and clear marketing reinvestment, they delivered strong profitability," Ali Dibadj, an analyst for Sanford C. Bernstein & Co. in New York, said in an e-mail to Bloomberg News following Coke's earnings. Dibadj rates Coca-Cola an "Outperform."
Investors should consider gulping down Coca-Cola's stock to add some fizz to their portfolios.
Coca-Cola (NYSE: KO): Refreshing EarningsCoca-Cola reported a quarterly profit of $2.05 billion, or 89 cents a share. That was an increase from the $1.9 billion or 82 cents reported in the same period a year ago.
Analysts had been looking for 87 cents on revenue of $10.82 billion, according to Thomson Reuters.
Revenue increased 5.9% to $11.14 billion. Gross margins fell a tad to 61% from 62.5% due to higher input costs.
CEO Muhtar Kent said in a conference call after the earnings release, "Despite a continued mixed global environment, our hard working teams achieved broad-based volume and value share gains in nonalcoholic ready-to-drink beverages globally, with volume growth across every geographic operating group and revenue growth ahead of our long-term growth target."
Growth in developed markets wasn't as healthy as in emerging markets, but still rose. Sales volume climbed 6% in Spain, 3% in Germany and Japan, and 1% in the United States.