Coca-Cola’s upbeat first quarter earnings call on Tuesday turned a spotlight on the beverage giant’s undeniable financial success that beat analyst expectations in a big way. The beverage titan reported a third quarter revenue of $11.22 billion, beating analyst estimates of $11.14 billion. This strong top-line result demonstrates the power and staying power of Coca-Cola, even in a rapidly changing beverage landscape.
The company’s earnings per share (EPS) stood at 73 cents, slightly surpassing the analysts’ forecast of 71 cents. This positive news contributes to Coca-Cola’s long-standing reputation for consistent dividend payments, making it a blue-chip favorite among long-term investors. Notably, Warren Buffett’s Berkshire Hathaway remains one of Coca-Cola’s largest shareholders, having held its stock since 1988.
At market close, April 28, Coca-Cola’s stock price hit $71.79, up about 16.3% from this time last year. That’s a phenomenal growth rate. That’s almost double the 8.4% gain of the S&P 500 over the same time. Supposedly, Coca-Cola stock is still doing great. This further cements its standing as a safe investment for those seeking safety and consistent, moderate returns.
Investors who put $1,000 into Coca-Cola at the end of 1988 have enjoyed extraordinary returns. Their $1,000 investment is now worth approximately $36,487. If you were to invest $1,000 in Coca-Cola and hold it for ten years, you would realize a total return of $2,163. Five years later that same investment would still return a whopping $1,728. These numbers paint a powerful picture of the strong inflation-adjusted long-term returns that Coca-Cola still promises to its long-term shareholders.
Their recent earnings report makes for an incredible read, as Coca-Cola blew past market expectations. This success adds to the company’s reputation as a stable and lucrative investment. Backed by a strong hard dividend policy and a long history of dependable profits, Coca-Cola continues to be a foundation stone of many investment portfolios.
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