Atlanta, Georgia – Coca-Cola stocks experienced a boost following the release of their first-quarter earnings report that exceeded analyst expectations. The classic beverage company reported adjusted earnings of $0.72 per share on $11.3 billion in revenues for the quarter, surpassing estimates of $0.70 per share and $11.01 billion in revenue. The net income for the period increased to $3.18 billion, or $0.74 per share, up from $3.11 billion, or $0.72 per share, in the same quarter last year. Additionally, the company raised its organic revenue guidance for the full year to 8-9%, up from the previous outlook of 6-7%.

The positive quarterly results were largely driven by strong demand for Coca-Cola’s Fairlife and Fanta soft drinks. The company also reported a non-cash impairment charge of $760 million related to sports drink maker Bodyarmor, which was acquired for $5.6 billion in 2021 to enhance Coca-Cola’s presence in the sports and energy drink markets. Despite the impairment charge, Coca-Cola’s earnings report was viewed as a positive surprise.

Analyzing the long-term and short-term price charts, it appears that Coca-Cola shares are currently in an uptrend but showing signs of potential exhaustion. The stock failed to re-test previous highs and broke below support levels in recent months. While the daily chart offers some bullish evidence, with the stock holding above key moving averages, the weekly and monthly charts suggest a more top-heavy outlook.

Looking ahead, analysts are cautious about the stock’s performance, as recent earnings may not be sufficient to drive prices significantly higher. If Coca-Cola fails to break above the $65 level decisively, investors may see continued downside retracements. Technical indicators point to potential support levels near $60.20, $58.50, $57.20, and $55.90 in case of a downward break. Overall, while the earnings report showed positive results, it remains to be seen if Coca-Cola shares can overcome current challenges to trend higher in the near future.