Coca-Cola gains after posting strong volume growth

Coca-Cola met the bar in the first quarter, with adjusted earnings per share of $0.73 coming in a penny above estimates while net operating revenues of $11.13 billion were only a touch shy of expectations. 

Importantly, the beverage seller maintained its full-year guidance for EPS and organic revenue growth “despite some pressure in key developed markets” highlighted by Chairman and CEO James Quincey. 

Shares are 1.1% higher in premarket trading.

Unlike last quarter, when Coca-Cola’s results impressed due to a strong ability to charge more for drinks, the company’s price mix — a metric of what it charges across a variety of its offerings — rose 5%, 60 basis points below expectations, while making it up with volumes, which were up 2% for the second consecutive quarter. Analysts had thought volumes would decline in Q4 and be roughly flat in Q1.

Management also said that the company was well insulated from the downside risk on everyone’s minds: tariffs.

“The company’s operations are primarily local, however, it is subject to global trade dynamics which may impact certain components of the company’s cost structure across its markets,” reads an updated line to Coca-Cola’s guidance. “At this time, the company expects the impact to be manageable.”