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Highlights:
- The UPS stock soared over four per cent in the pre-market trading following its earnings release.
- Coca-Cola Company (NYSE:KO) noted a 10 per cent YoY growth in its latest quarter revenue.
- United Parcel Service, Inc. (NYSE:UPS) has reaffirmed its annual revenue guidance.
Two of the major companies, Coca-Cola Company (NYSE: KO) and United Parcel Service, Inc. (NYSE: UPS), reported their latest financial results on Tuesday, October 25, following which their stock prices went up in the pre-market session.
The KO stock rose over two per cent, while the UPS stock jumped more than four per cent in the pre-market hours on Tuesday. The earnings season has helped the market witness a positive momentum, as positive guidance and better than previously anticipated earnings from some companies have lifted the market participants' spirits.
Now, let's discuss the earnings highlights of the companies and see how they have performed in the recent quarter.
Coca-Cola Company (NYSE:KO)
The KO stock soared 2.74 at 8:00 am ET to trade at US$ 59.15 on Tuesday after it reported its earnings results for the third quarter while raising its annual guidance. The beverage company, with a dividend yield of 3.15 per cent, said on October 25 that its revenue rose 10 per cent YoY to US$ 11.1 billion in the latest quarter.
The company said that its organic revenue (non-GAAP0 GAAP) jumped 16 per cent YoY. Coca-Cola's EPS was up 14 per cent YoY to US$ 0.65 apiece in Q3 FY22, and its comparable EPS (non-GAAP) rose seven per cent YoY to US$ 0.69.
The company now estimates to deliver an organic revenue (non-GAAP) growth of 14 per cent to 15 per cent YoY in fiscal 2022. For its comparable EPS (non-GAAP), the company expects it to
grow between six per cent and seven per cent YoY from US$ 2.32 in 2021.
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United Parcel Service, Inc. (NYSE:UPS)
The UPS stock traded at US$ 172.65 at 8 am ET on October 25, up 4.29 per cent from its previous close of US$ 165.55. With a dividend yield of 3.67 per cent, the company delivered a 4.2 per cent YoY growth in its Q3 FY22 revenue of US$ 24.2 billion.
According to its earnings release, United Parcel Service's operating profit rose 7.5 per cent YoY to US$ 3.1 billion, and its adjusted diluted EPS rose 10.3 per cent YoY to US$ 2.99 in Q3 FY22.
For fiscal 2022, the logistics firm has reaffirmed its revenue guidance of US$ 102 billion.
Bottom line:
The positive third-quarter earnings season could boost investors' confidence amid several macroeconomic headwinds. Meanwhile, several big companies' earnings awaiting later this week, which investors would closely watch.
However, as the inflation remained stubbornly high and the volatility still hovered over the market, investors should exercise due diligence before putting any bets.
