Coca-Cola Surpasses Analyst Expectations With Worldwide Sales Increases

Are North American consumers making impulse purchases of soft drinks again? Philip Gorham, a senior equity analyst for Morningstar Inc., told

that he believes they are following Coca-Cola Co.'s

announcement that it had boosted third-quarter profits by 8.4% after winning more customers overseas and increasing North American sales volume for the second quarter in a row. Coca-Cola said that net income increased to $2.06 billion (or 88 cents a share). Most interestingly, the company said it may repurchase $2 billion of its shares this year, up from the $1.5 billion announced previously. Coca-Cola's sales rose to $8.43 billion, beating the average of analysts' estimates compiled by Bloomberg. Global sales by drink volume grew 5% and were reportedly driven by the Coca-Cola brand. China posted 12% volume growth while Japan grew 11%. “The 2% volume gain in North America matched that unit's gain in the second quarter as the unit reconfigures package sizes, such as adding 99-cent bottles, and pricing strategies amid high unemployment,” Bloomberg writes. “Sales for the unit grew 2% while operating income increased 16%.” Coca-Cola currently trades for $59.96.