Coca-Cola Co (NYSE: KO) reported market-beating results for its fiscal third quarter on Tuesday. Shares are up nearly 2.0% in response.
Cramer reacts to the earnings report
Cost of sales went up 14.8% this quarter to result in a 170-bps contraction in gross margin. Still, the beverage giant was able to neutralise higher costs with price increases.
Reacting to the earnings report on CNBC’s “Squawk on the Street”, famed investor Jim Cramer said:
It was a good quarter – a solid quarter that we’ve been getting over and over from James Quincey. I think it’s the quarter where people will say let’s take it to the $60s.
Coca-Cola has its 100-Day sitting currently at $61. If true, that forecast “could”, therefore, see the stock break above a key resistance. Cramer added:
If we really do have a slowdown, the [Coca Cola stock] is the one to own. I really like it.
Wall Street also recommends that you buy Coca-Cola stock as it has upside to $66 on average – up over 10% from here.
Coca-Cola Q3 financial highlights
Net income climbed from $2.47 billion to $2.83 billion
Per-share earnings were 65 cents versus the year ago 57 cents
Adjusted for one-time items, EPS came in at 69 cents
Revenue jumped just over 10% YoY to $11.06 billion
Consensus was 64 cents a share on $10.52 billion revenue
Coca-Cola stock up on raised guidance
Coca-Cola stock is also up this morning because the multinational raised its full-year guidance. It’s now calling for a 6.0% to 7.0% annualised growth in its 2022 adjusted EPS on up to 15% increase in revenue.
Nonetheless, the Atlanta-headquartered firm did agree that strength of the U.S. dollar was a headwind for its international business.
The post Cramer shares his outlook on Coca-Cola stock after its Q3 results appeared first on Invezz.
