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Coca-Cola Q2 Results Beat Estimates; Reaffirms FY19 Earnings Outlook

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Beverages giant Coca-Cola Co. (KO) on Tuesday reported a 13 percent increase in profit for the second quarter from last year, reflecting higher revenues and fewer charges.

Both revenue and adjusted earnings per share for the quarter beat analysts' estimates. Looking ahead, the company reaffirmed its fiscal 2019 earnings outlook and raised its forecast for revenue growth. Shares of Coca-Cola are advancing more than 1 percent in pre-market trading.

Second-quarter net income attributable to shareowners of Coca-Cola was $2.61 billion or $0.61 per share, up from $2.32 billion or $0.54 per share in the previous-year quarter.

Comparable earnings per share from continuing operations were $0.63, compared to $0.60 per share last year, and included the impact from a 9-point currency headwind.

On average, analysts polled by Thomson Reuters expected the company to report earnings of $0.61 per share for the quarter. Analysts' estimates typically exclude special items.

Net operating revenues for the quarter grew 6 percent to $10.00 billion from $9.42 billion in the year-ago quarter, driven by concentrate sales growth of 4 percent and price/mix growth of 2 percent. The Street expected revenue of $9.99 billion for the quarter.

Organic revenues also grew 6 percent in the quarter, through balanced volume and price/mix, with all operating segments contributing to organic revenue growth. Unit case volume growth was 3 percent in the quarter.

Looking ahead to the third quarter, Coca-Cola projects comparable net revenues on an adjusted basis to be impacted by a 6 percent tailwind from acquisitions, divestitures and structural items; and 3 percent currency headwind based on the current rates and including the impact of hedged positions.

For fiscal 2019, Coca-Cola affirmed its outlook for comparable earnings per share from continuing operations growth in a range of -1 percent to 1 percent growth, compared to earnings of $2.08 per share in 2018.

The company now projects 5 percent growth in organic revenues and 12 percent growth in comparable currency neutral net revenues, on an adjusted basis. Earlier, Coca-Cola projected about 4 percent growth in organic revenues.

Analysts expect earnings of $2.1 per share for the year on revenues of $37.36 billion.

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