Shares of Coca-Cola Co. KO, +1.89% ran up 2.6% in premarket trading Tuesday, after the beverage giant beat third-quarter profit and revenue expectations, as price increases helped offset ongoing cost inflation. Net income rose to $2.83 billion, or 65 cents a share, from $2.47 billion, or 57 cents a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share of 69 cents beat the FactSet consensus of 64 cents. Revenue grew 10.2% to $11.06 billion, above the FactSet consensus of $10.52 billion. Unit case volume increased 4%, as growth in North American, Latin American and Asia Pacific offset a decline in Europe, Middle East and Africa (EMEA). Overall concentrate sales increased 4% and price/mix rose 12%, while unfavorable current translation was an 8% drag. Cost of goods sold rose more than sales, up 14.8% to $4.57 billion, as gross margin contracted to 58.7% from 60.4%. For 2022, the company raised its 2022 adjusted EPS growth outlook to 6% to 7% from 5% to 6%. The stock has lost 7.4% over the past three months through Monday, while the Dow Jones Industrial Average DJIA, +0.64% has slipped 1.5%.
