On Thursday, Coca-Cola (KO.US) rose 2% to $94.56, setting a new all-time high for its stock price, while Procter & Gamble (PG.US) climbed more than 6% to $166.75.
The move came after Procter & Gamble released its fiscal 2027 first-quarter earnings report. The report showed that the company's Q1 net sales reached $23.3 billion, up 4% year-over-year and above the roughly $22.8 billion consensus estimate. Core earnings per share came in at $2.00, up 1% year-over-year and beating the expected $1.89. The company had previously guided for core EPS to decline 5% or more year-over-year in the quarter, but instead it rose. Organic sales growth, the metric most closely watched by the market, reached 4%, far exceeding the consensus estimate of about 2% (even the most optimistic forecasts from investment banks UBS and Evercore ISI were only 2.6% to 3%).
Coca-Cola is scheduled to report its third-quarter results on October 27. In a research note on Monday, UBS said Coca-Cola is expected to report third-quarter results broadly in line with expectations and, while maintaining earnings visibility, could still support further valuation adjustments and continued outperformance. The bank expects the company to post third-quarter earnings per share of $0.87, organic revenue growth of 4%, and a gross margin of 61.6%.
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