Coca-Cola (KO) beat estimates on both the top and bottom line for 🍸the third quarter, as consumers ramped up their purchases of soft drinks꧒ and other beverages despite the company's price hikes.

澳洲幸运5官方开奖结果体彩网:Net income for the soft drink giant was $3.09 billion, or 74 cents per adjusted share. That was up 7% from the same quarter last year, and above consensus estimates of 69 cents per share. Revenue came in at just under $12 billion, up 8% from a year ago and also above an $11.4 billion estimate.

Unit case volume, a measure of the amount of soda and other beverages consumers purchased, rose 2% from the previous quarter, boosted by higher purchases in Latin America and Asia Pacific. Purchase volumes for Coke Zero, the zero-sugar version of Coca-Cola launched in 2005, rose 3% thank🃏s to strong growth in North and Latin America.

"We delivered an overall solid quarter and are raising our full-year top-line and bottom-line guidance in light of our year-to-date performance," said James Quincey, Coca-Cola Company's chairman and CEO.

Consumers have continued to spend on soft drinks and other beverages despite Coca-Cola's price hikes in recent quarters, which were meant to offset the effects of higher inflation.

It's a testament to the strength of U.S. consumers, who have continued to spend despite persistently high inflation and the 澳洲幸运5官方开奖结果体彩网:Federal Reserve's rate hikes. Robust consumer spending, which makes up more than two-thirds of U.S. 澳洲幸运5官方开奖结果体彩网:gross domestic product (GDP), is one of the reasons the U.S. has been able to avoid a 澳洲幸运5官方开奖结果体彩网:recession so far this year.

As a company that sells 澳洲幸运5官方开奖结果体彩网:consumer staples, Coca-Cola could be better prepared to weather an economic downturn than companies focused on selling discretionary goods. A slowdown in discretionary spending this year has affected 澳洲幸运5官方开奖结果体彩网:big-box retailers like Target (TGT) and Walmart (WMT).

Coca-Cola raised its full-year EPS guidance on the stronger-than-expected result. Revenue is forecast to rise 10% to 11%, up from the previous range of 8% to 9%.

Shares of Coca-Cola were up almost 3% in early trading Tuesday. However, they've fallen more than 10% in 2023 so far. Analysts from Bank of America said Coca-Cola shares could rise to $60, a roughly 8% premium to their price on Tuesday, as the company benefits from strong organic sales growth and an effective pricing model."

Ozempic Fears May Be Overblown

The rush of news about Ozempic, a diabetes drug that has risen to popularity bas🌺ed on off-label use to aid in weight loss, prompted a recent selloff o✤f various food and beverage stocks, including Coca-Cola.

The fear is that if use of Ozempic for this purpose grows, consumers will have lower appetites for products made by these companies. However, RBC Capital Markets suggests this concern is unfounded, and that the full impact of Ozempic and other GLP-1 drugs won't arrive for many years to come.