With a new chief executive at the helm, Coca-Cola on Wednesday reported earnings and revenue that topped analysts' expectations. The beverage maker also issued a more upbeat earnings forecast for the full year.
Increasingly, shoppers are searching for Coke's healthier options — low in sugar and free of carbonation — which fueled these results, though Coca-Cola posted another drop in profit as it's still in the midst of completing a refranchising plan.
Coca-Cola shares initially jumped 1.5 percent in premarket trading before reversing course and falling modestly.
Coke is divesting from its U.S. cold-fill bottling operations, with a self-imposed deadline to finish the reorganization by the end of the year. The company had warned earlier that its 2017 profit would drop as a result of these efforts.
In the second quarter alone, the beverage maker incurred a charge of $653 million related to refranchising.
Here's what the company reported versus what Wall Street was expecting:
- Earnings per share: 59 cents adjusted compared with an estimate of 57 cents adjusted, according to Thomson Reuters analysts' consensus
- Revenue: $9.702 billion compared with a forecast of $9.652 billion
"Our second quarter results demonstrate continued progress against the strategic priorities we have laid out to accelerate the transformation of our business into a total beverage company with balanced growth across a consumer-centric portfolio," new CEO James Quincey said in a statement.
Former Coca-Cola CEO Muhtar Kent stepped down in May and was succeeded by Quincey, who had previously been the company's chief operating officer. The second quarter marks Quincey's first earnings report as chief executive.