Coca-Cola stock pops as earnings top estimates amid 'challenging' environment

Core Insights - Coca-Cola (KO) reported adjusted earnings of $0.82, surpassing Wall Street's expectations of $0.78, with organic revenue growth of 6% [1][2] - The company maintained its fiscal 2025 guidance, expecting adjusted earnings growth of approximately 3% and net revenue growth of 1% to 2% [6] Financial Performance - Global unit volume grew by 1%, exceeding the expected 0.75% increase, but lower than the 4% and 6% growth seen in Q3 of 2022 and 2021 respectively [3] - In the EMEA region, unit case volume increased by 4%, while North America and Latin America remained flat, and the Asia Pacific segment experienced a 1% decline [3] Product Performance - Coca-Cola Zero Sugar saw a significant volume increase of 14%, driven by growth across all regions [3] - Other beverage categories, including juice, value-added dairy, and plant-based beverages, experienced a volume drop of 3% [4] - The water business grew by 3%, primarily driven by North America, while sports drink volume also increased by 3% globally [4] Market Position - Coca-Cola's stock rose over 2% in pre-market trading and is up about 10% year-to-date, contrasting with PepsiCo's flat performance [2][7] - The company emphasized its strategy of offering "choice" across its beverage portfolio and leveraging its franchise model to strengthen its market leadership [2]