Coca-Cola tops Wall Street estimates, boasts more pricing power than Pepsi

Coca-Cola Co. topped Wall Street profit estimates last quarter as consumers guzzled down more of its beverages while paying a higher price for them, sending shares more than 3% higher in premarket trading.

The Sprite and Coke maker reported adjusted earnings per share of $0.55 for the fourth quarter ahead of the open on Tuesday, above estimates of $0.52 according to analysts polled by Bloomberg. Sales of over $11.5 billion also topped forecasts.

Going forward, the company said it expects adjusted earnings per share to grow between 2% to 3% this year, with organic revenue growth of 5% to 6%, trailing analysts’ estimates for 7.1%.

Coca-Cola’s price mix — a metric of what the firm charges across a variety of its offerings — jumped 9% for the quarter, while global volume rose 2%. The ability to push price without seeing volumes falter stands in stark contrast to its chief rival, PepsiCo, which posted a sales miss last week and said it will focus on value with fewer-count multipacks, but likely won’t lower prices across the board.

Both companies have lagged the overall market, though Coke has fared better, up 8% in the last year as Pepsi has plunged 15%. The S&P 500, meanwhile, has rallied nearly 21%.

Kelly Cloonan is a journalist who has written for Business Insider and Fast Company.