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Coca-Cola shares hit a fresh all-time high on Tuesday, second-quarter results top estimates fueled by sales growth of namesake soda brand

Coca-Cola Companys (KO) quarterly results, reported on Tuesday, topped Wall Street estimates, supported by sales of its namesake soda brand.

Coca-Cola shares closed higher for the seventh time in the past twelve trading sessions in New York on Tuesday. It has also been the sharpest daily surge since February 12th 2009. The stock went up 6.07% ($3.11) to $54.33, after touching an intraday high at $54.64 and also a fresh all-time high.

Shares of Coca-Cola Company have risen 14.74% so far in 2019 compared with a 19.89% gain for the benchmark index, S&P 500 (SPX).

In 2018, Coca-Colas stock went up 3.20%, thus, it outperformed the S&P 500, which registered a 6.24% loss.

Coca-Colas net sales went up 6% year-on-year to $10.00 billion during its fiscal second quarter, driven by a 4% volume and transaction growth in its namesake brand. In comparison, the median analyst estimate had pointed to revenue of $9.99 billion.

Net income attributable to shareholders rose to $2.61 billion ($0.61 per share) during the fiscal second quarter from $2.32 billion ($0.54 per share) in the year-ago period.

Meanwhile, earnings per share, which exclude special items, were reported at $0.63 during the second quarter. Analysts on average had expected adjusted earnings of $0.61 per share.

“Our strategy to transform as a total beverage company has allowed us to continue to win in a growing and vibrant industry,” James Quincey, Coca-Colas Chief Executive Officer, said in a statement, cited by CNBC.

Coca Cola also revised up its full-year revenue forecast, noting it now projects a 5% growth in organic revenue. Its previous forecast had pointed to a 4% organic revenue growth.

On the other hand, the beverage company reiterated its fiscal 2019 profit forecast, saying it expects EPS performance between 1% drop and 1% growth.

Analyst stock price forecast and recommendation

According to CNN Money, the 21 analysts, offering 12-month forecasts regarding Coca-Cola Companys stock price, have a median target of $55.00, with a high estimate of $60.00 and a low estimate of $46.00. The median estimate represents a 1.23% upside compared to the closing price of $54.33 on July 23rd.

The same media also reported that at least 11 out of 23 surveyed investment analysts had rated Coca-Cola Companys stock as “Hold”, while 10 – as “Buy”. is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover Forex, Price Action and Social Trading.

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