Coca-Cola set to report third-quarter earnings as shares outperform broader market

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Coca-Cola Q3 earnings outlook

Highlights

Coca-Cola will report Q3 earnings Tuesday, with LSEG consensus estimates projecting 88 cents EPS and $12.92 billion revenue.
Coca-Cola reaffirmed full-year guidance for 9%-10% comparable EPS growth and about 5% organic revenue growth, as investors monitor quarterly support for these targets.
Coca-Cola stock has risen about 32% YTD versus the S&P 500's 12%, driven by winning the KFC U.S. business and announcing $10 billion U.S. infrastructure investment through 2030.

Quarterly expectations and business outlook

As reported by CNBC, Coca-Cola is preparing to release its quarterly earnings before the market opens on Tuesday, with Wall Street consensus estimates from LSEG pointing to earnings per share of 88 cents and revenue of $12.92 billion.

In recent quarters, company executives have said shoppers are facing pressure from inflation and economic uncertainty. Even so, Coca-Cola has said consumers are still purchasing its drinks across both premium brands such as Fairlife and its flagship soda portfolio.

For the full year, Coca-Cola is projecting comparable earnings per share growth of 9% to 10% and organic revenue growth of about 5%. Those targets leave investors watching whether quarterly performance supports the company's current outlook.

Competitive position and U.S. investment plans

PepsiCo is facing a tougher demand environment, particularly in its home market. Earlier in October, the rival beverage company cut its full-year earnings forecast as demand weakened, and its U.S. soda business was a notable soft spot in its fiscal third quarter.

Coca-Cola has also recently strengthened its competitive position by winning the U.S. business of KFC, a longtime Pepsi customer. That gain comes as Coca-Cola says its system will invest $10 billion in infrastructure across the U.S. through 2030, including previously announced projects in California, New York and other states.

The company's stock has climbed about 32% so far this year, ahead of the S&P 500's roughly 12% gain over the same period. That advance has lifted Coca-Cola's market capitalization to around $398 billion.

Our earlier article looked at how investors were heading into the third-quarter earnings season with the S&P 500 near record highs, but facing a tougher backdrop from higher oil prices, elevated Treasury yields, and political uncertainty. It also noted that profit growth was heavily concentrated in a small group of market leaders, raising concerns about market breadth and the risk of outsized reactions to earnings surprises.

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