Positive Quarterly Results Send Coca-Cola Shares Higher – Long Positions Attractive
Shares of Coca-Cola Co. rose to as high as $43.03 per shares after the company published better-than-expected profit and revenue for the latest quarter.
For the three-month period through September, the world’s largest beverage maker registered a profit of $1.05 billion, or 24 cents a share, down from $1.45 billion, or 33 cents a share a year earlier. Excluding certain items, Coke’s per-share earnings were 49 cents, topping the 48 cents forecast by analysts.
Coke reported that its beverage volumes grew 1% world-wide in the current quarter, compared to flat volume growth that was witnessed in the second quarter. The flat performance in the second quarter was the first time since 1999, that the company reported no growth in volumes. Topping the weakness witnessed overseas, a stronger U.S. dollar also hurt the company’s results.
Coca-Cola generates about half of its sales abroad. However, higher prices and a smaller package size in the U.S. that costs consumers more per ounce helped the company offset those declines.
Buy Stop at 42.65, take profit at 43.00, stop loss at 42.40