Coca-Cola (KO.US) reported financial results for Q4 2022 today ahead of the Wall Street session open. Report turned out to be mostly in-line with market expectations and, therefore, no major move can be spotted on Coca-Cola shares in today's US premarket trading. Share price of the company gained 0.7% less than two hours ahead of the Wall Street session open.
Better-than-expected sales and in-line earnings
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Open account Try demo Download mobile app Download mobile appCoca-Cola reported Q4 2022 EPS at $0.45 - a result in-line with market expectations and flat compared to Q4 2021. Sales turned out to be slightly better-than-expected with adjusted operating revenue coming in at $10.2 billion (exp. $9.95 billion) and being 7% year-over-year higher. However, adjusted organic sales growth grew at a pace of 15% YoY in Q4 2022 and was much better than +10.6% YoY growth expected. A small drop in unit case volume can be somewhat worrying as it hints that the company sells less of its products. Nevertheless, a 12% increase in price/mix allowed the company to more than offset unit case drop and report higher year-over-year sales.
Coca-Cola Q4 2022 results
- Comparable EPS: $0.45 vs $0.45 expected
- Adjusted operating revenue: $10.2 billion vs $9.95 billion expected
- Unit case volume: -1%
- Nutrition, juice, dairy and plant-based: -7%
- Sparkling soft drinks: 0% - Price/mix: +12% vs +8.1% expected
- Adjusted organic revenue growth: +15% vs +10.6% expected
2023 organic revenue seen growing 7-8%
The US beverages company also issued a new set of economic forecasts for 2023. Coca-Cola expects adjusted organic revenue to grow at a pace of 7-8%. Median market expectations pointed to a forecast of 7.15% so guidance provided by Coca-Cola can be seen as in-line with expectations. Apart from that, comparable EPS is expected to grow 4-5% in 2023, meaning that it expects a slight acceleration compared to around 2.5% growth for 2022. Capital expenditures are seen reaching around $1.9 billion. Last but not least, Coca-Cola said that it expects commodity price inflation to remain a mid-single digits headwind on comparable cost of goods sold in 2023.
Coca-Cola (KO.US) trades slightly higher in premarket. Current quotes point to a less-1% bullish price gap at the session opening and launch of the trading near resistance zone ranging above $61.00 mark. Source: xStation5
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