Atlanta, GA 4/18/12 (StreetBeat) -- Coca-Cola Co. (NYSE: KO) first-quarter earnings beat Wall Street expectations as volume soared in emerging markets and even rose in the U.S.The world's largest soft drink company on Tuesday reported a 3% rise in profit to 89 cents per share, topping estimates by 2 cents. Sales grew 6% to $11.14 billion, over estimates of $10.82 billion. That reflects higher volumes and a 3% increase in pricing.
Shares rose 2.6% to 74.35 just after midday. Intraday, the stock hit its best level since July 1998.
Shares of PepsiCo (NYSE: PEP) and Dr Pepper Snapple Group (NYSE: DPS) also rose.
"Despite a continued mixed global environment, our hardworking teams achieved broad-based volume and value share gains in nonalcoholic ready-to-drink beverages globally, with volume growth across every geographic operating group and revenue growth ahead of our long-term growth target," said CEO Muhtar Kent.
Worldwide volume grew 5% on the quarter and volume grew in all key markets including a 2% rise in North America and a 20% rise in India. Developing nations saw the largest increase in volume with volume in China increasing 9% and in Brazil 4%.
The rise of volume, especially in developing markets, is a positive sign the global economy is improving — and of Coke's ability to expand in huge, fast-growing markets.
U.S. volume rose 1% despite recent reports that American consumption was on the decline.
Total sales of carbonated beverages fell nearly 1% in 2011 to 9.27 billion cases, reported Beverage Digest in March.
The maker of Sprite, Minute Maid and its signature cola said it is on track with its cost-cutting program to save $550 million to $650 million annually by 2015.
Dr Pepper Snapple will report first-quarter earnings on April 25 before the market opens.
Analysts are expecting the maker of 7up and Sunkist to report a 2% decline in EPS to 48 cents, but a 2% increase in revenue to $1.36 billion.
The Beverages-Non-Alcoholic group is ranked No. 104 out of Investor's Business Daily's 197 industry groups.
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