Coca-Cola (KO) shoots past earning expectation

Coca-Cola (NYSE: KO) released its Q3 2022 earnings on October 25, showcasing impressive numbers across the board. 

Organic sales grew by 16% during the quarter, shooting past the expected 9.6% growth, with the highest growth seen in Europe at 20%, Middle East & Africa at 18%, and North America at 14% growth. 

Operating margin was 29.5% of sales vs. 30.0% last year, almost remaining flat year-on-year (YoY), while revenues grew by 11%. For the rest of the year, Coca-Cola expects to deliver 14-15% organic revenue growth. 

Investors seemed to like what the beverage maker posted, as shares are up 2.48% at the time of writing.   

KO chart and analysis

In the last month, KO has been trading in the $54.02 to $58.37 range, above the 20-day moving average. The stock is part of the beverages industry, with other 40 stocks in the same industry, outperforming 65% of them. 

Notably, technical analysis indicates a support zone from $53.77 to $54.73 and a resistance zone from $64.68 to $66.21. 

Analysts rate the stock a ‘strong buy,’ with the average price in the next 12 months for KO expected to reach $65.50, 13.77% higher than the current trading price of $57.57. Out of 14 Wall Street analysts, 11 have a ‘buy’ rating, and 3 have a ‘hold’ rating.

With increasing organic revenue growth in a challenging economic environment and a steady and secure dividend yield of 3.06%, it is clear why KO often represents a cornerstone of dividend investors’ portfolios. 

If the company manages to continue growing organically, the stock will likely head higher, possibly confirming the bullishness on Wall Street.  

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