The Coca-Cola Co (NYSE: KO) reported strong third-quarter numbers on Wednesday morning, reasserting its dominant position in the struggling carbonated beverage business.
Coca-Cola management confirmed the company is gaining market share from rivals such as Dr Pepper Snapple Group (DPS), which reported a third-quarter revenue miss on Wednesday.
Coca-Cola reported adjusted earnings per share of 50 cents on revenue of $9.08 billion. Both numbers topped consensus analyst estimates of 49 cents and $8.72 billion, respectively.
Coca-Cola also reaffirmed its full-year financial outlook and said its organic core revenues grew by 4 percent. Analysts were expecting only 3.4 percent growth.
Total unit volume on the quarter was flat compared to a year ago, but pricing was up 3 percent.
Coca-Cola said it gained market value share in total nonalcoholic ready-to-drink beverages. The company also said it gained or maintained market share in sparkling soft drinks, juices, sports drinks and ready-to-drink tea.
“Our performance reflects the strength of an organization that is focused on delivering against its financial commitments while also making substantial structural and cultural changes,” Coca-Cola CEO James Quincey says.
Dr Pepper Snapple wasn’t quite as fortunate in the third quarter. The company reported core EPS of $1.10 on revenue of $1.74 billion. Both numbers fell short of consensus analyst expectations of $1.16 and $1.76 billion, respectively.
Management said it expects full-year core EPS in a range between $4.50 and $4.57. The company is experiencing the same stagnant U.S. beverage trends that plagued PepsiCo(PEP) when it reported earnings earlier this month. Dr Pepper Snapple reported flat bottler case sales volume growth in the third quarter. Carbonated soft drink volume was down 1 percent, and U.S. and Canada sales volumes were flat. Dr Pepper Snapple stock traded down by more than 6 percent Wednesday morning.
KO stock was down 0.3 percent following its report. Wells Fargo analyst Bonnie Herzog says Coca-Cola’s quarter was nothing for investors to get excited about.
“We are encouraged by positive momentum in many international markets,” Herzog says, according to TheStreet. “However, with flat/negative unit case volume growth for over a year, work clearly still remains to drive more balanced revenue growth going forward.”
Coca-Cola and PepsiCo both beat…
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