Coca-Cola Outperforms Rivals Despite Cyberattack, Earnings Beat Expectations
Coca-Cola (KO) delivered one of its strongest quarters in years with adjusted earnings per share of $0.97 on July 28, exceeding the expected $0.93 and driving a more than 7% rise in shares to record highs. Despite a ransomware attack that shut down Fairlife's U.S. production for eleven days, Coca-Cola reported resilient performance across its business lines. Morgan Stanley responded by raising its price target on Coca-Cola from $89 to $100 and maintaining the stock as their top pick in the beverage sector. The firm highlighted structural outperformance, with organic sales growth at 7%, unit case volume up 5%—well above analyst expectations—and pricing power that allowed a roughly 3% increase even amid competitive pressure. Fairlife's performance was particularly notable; despite an extended production shutdown due to cyberattack disruptions, the brand still achieved year-over-year sales growth of 18%. Analysts suggest this resilience could contribute over 100 basis points annually to Coca-Cola’s long-term corporate sales growth as capacity constraints ease.
Topics: Coca-Cola cyberattack Morgan Stanley upgrade sales growth