Coca-Cola Earnings: Innovation, Brand Investments, and In-Market Execution Drive Strong Results

Wide-moat Coca-Cola posted better-than-expected organic revenue growth (12%, versus our 11% forecast) and adjusted EPS ($0.68, versus $0.67) in the first quarter of 2023, reaffirming our view that the firm is well-positioned to continue driving sales and profit expansion through consumer-centric innovations and brand marketing. We are maintaining our $58 fair value estimate after incorporating the latest results in our valuation model, with our projections for mid-single-digit average annual top-line growth over the next 10 years and average operating margins in the low 30s remaining unchanged.