US: Coca-Cola Co fighting fit after tough Q3 - analyst
The Coca-Cola Co announced its Q3 results yesterday
The Coca-Cola Co has survived its toughest quarter of the year and looks good for long-term growth, an analyst has said.
In third-quarter results released yesterday, the soft drinks maker saw sales fall short of Wall Street expectations, with a 0.7% increase over the same three-month period last year. However, analyst Wells Fargo said strong overall volumes growth against a tough economic background means Coca-Cola remains well positioned.
“Coca-Cola delivered in-line results in what should be the most challenging quarter of the year and we think the positive long-term story remains intact,” Wells Fargo said in a note yesterday (16 October).
Stifel Nicolaus, meanwhile, said that Coca-Cola's results were broadly in line with expectations, and praised the company for finding a 2% rise in volumes in North America. The analyst said the increase is more evidence of the company's leadership in the region and a positive for all US beverage companies.
Both analysts highlighted concerns over a slightly weaker sales rise in China, which came in at +2% in Q3 compared to 7% in Q2, possibly due to economic cooling in the country. However, Stifel added: “We expect the pricing environment to remain more competitive but believe Coca-Cola's region volume is likely to pick up.”
In a call with investors yesterday, Coca-Cola CEO Muhtar Kent said troubles in Europe are unlikely to worsen.
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