Coca-Cola beat estimates for quarterly earnings and revenue Tuesday after consumers bought more of its water, sports drinks and its namesake sugar beverages. [Div] group> p: first-child "/>
Shares of the company jumped 3% in premarket trading.
"We're encouraged by our first quarter results as our disciplined growth strategies continue to deliver strong underlying performance," CEO James Quincey said in a statement. ] Here's what the company reported with what Wall Street was expecting, based on a survey of analysts at Refinitiv:
- Earnings per share: 48 cents, adjusted, vs. 46 cents expected
- Revenue: $ 8.02 billion vs. $ 7.88 billion expected
The beverage giant reported fiscal first-quarter net income of $ 1
From continuing operations, the Atlanta -based company earned 48 cents per share, topping the 46 cents per share expected by analysts surveyed at Refinitiv.
Net sales rose 5% to $ 8.02 billion, beating expectations or $ 7.88 billion. The company attributed 2% of the sales growth to timing related to building bottler inventory to hedge Brexit uncertainty.  Unit case volume – the number of unit cases of Coke sold to customers, which helps measure growth without the impact of price and currency changes – increased 2%, helped by key markets in Asia and Europe. Argentina once again was a spot, with volume declining by double digits as the country's recession continued into 2019. North American unit case volume declined by 1%, while net sales for the region rose by 1%. The company blamed the impact of price hikes and packaging initiatives, as well as the timing of Easter, which landed late this year. The Coca-Cola brand continues to perform well globally, thanks to Coca-Cola Zero Sugar's double-digit growth for its sixth consecutive quarter. In February, the brand launched its first new flavor in more than a decade: Orange Vanilla
The company's water, enhanced water and sports drink business unit case volume grow by 6%, driven by consumers' eagerness for smaller, immediate consumption packages.
The company also completed its $ 5.1 billion acquisition of British coffee chain Costa during the three months ended March 29. Coca-Cola plans to introduce Costa ready-to-drink products in its second quarter.
company told investors last quarter that its 2019 earnings could decline by as much as 1%, its stock had its worst day in more than a decade. Quincey attributed the gloomy outlook to currency fluctuations, Fed rate hikes and changing tax rates. The company reiterated its full-year outlook, forecasting that earnings per share could fall by 1% and organic revenue growth by 4%.
Following Coke's annual meeting Wednesday, Quincey will become chairman of the company as long as he is reelected as a director. Quincey is taking over from Muhtar Kent, who served as CEO from 2008 until 2017.