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Key points Coca-Cola had solid Q3 earnings that topped estimates. The stock price was heading 2% lower on Wednesday. Is Coca-Cola stock a buy? The selloff could be related to external factors. Coca-Cola (NYSE:KO) stock was down about 2% Wednesday after the beverage maker released solid Q3 earnings that topped estimates. The company saw revenue decline 1% year over year to $11.85 billion, which is better than the $11.61 billion that analysts targeted. But organic revenue jumped an impressive 9%. Net income fell 8% to $2.8 billion, or 66 cents per share. Adjusted earnings were 77 cents per share, which also topped earnings. The numbers were not spectacular, but the stock was heading 2% lower. A negative catalyst may have been news of an e-coli outbreak in 10 states tied to McDonald’s (NYSE:MCD) and its Quarter Pounder burgers. Coca-Cola CEO addresses e-coli outbreak The Q3 revenue numbers were hurt most by a 2% drop in concentrate sales, which is basically the syrup it sells to bottlers for its carbonated beverages. However, it saw a 9% year-over-year sales increase in what it calls price and mix, which is basically the price per unit sold. Also, Coca-Cola saw 9% organic revenue growth in the quarter, which is Coca-Cola’s preferred measure, as it excludes the impact of foreign exchange. However, the operating margin fell to 21.2%, from 27.4% in the same quarter a year ago. The drop was partially due to a charge of $919 million related to remeasurement of the liability related to the acquisition of Fairlife in 2020, as well as currency headwinds. A 13-point currency headwind, due to foreign currency fluctuations, also impacted earnings. “Our business continues to demonstrate resilience in the face of a dynamic external environment,” James Quincey, chairman and CEO of Coca-Cola, said. “We are encouraged by our…

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Filed under: News - @ October 24, 2024 6:27 am