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.
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.
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