Higher prices help Coca-Cola earnings top estimates

Empty Coca Cola Can

Coca-Cola delivered quarterly earnings and revenue that beat analysts' expectations on Wednesday, as it raised prices in North America to offset the impact of a stronger dollar, which reduced the value of sales from overseas markets.

Net income attributable to shareholders rose to $3.11 billion, or 71 cents per share, in the second quarter ended July 3, from $2.60 billion, or 58 cents per share, a year earlier.

Excluding items, the world's largest beverage maker posted earnings of 63 cents per share, down from 64 cents a share in the year-earlier period. Revenue fell to $12.16 billion from $12.57 billion.

The company gets about 41 percent of sales from international markets. Wall Street had expected Coca-Cola to deliver quarterly earnings excluding items per share of 60 cents on $12.06 billion in revenue, according to consensus estimates from Thomson Reuters. Worldwide case volume was up 2 percent, more than analysts had been expecting.

Last quarter, the company reported a rise in revenue for the first time in nine quarters, helped by a 6 percent rise in revenue from North America, its biggest market. However, a strengthening U.S. dollar could continue to weigh on Coke's performance. Coca-Cola shares moved higher in premarket trading following the announcement.

The soft drinks giant declared a quarterly dividend of 33 cents per common share last week. It will be payable Oct. 1 of this year to shareowners of record as of Sept. 15, 2015. Read More Coca-Cola unveils new eco-bottle made from plants.

Earlier in the year, Coke's board approved a 53rd consecutive annual dividend increase, raising the quarterly dividend by 8 percent. "The increase reflects the Board's confidence in the Company's long-term cash flow," read a press release.

Reuters contributed to this report.

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