The Coca-Cola Firm KO shares rose greater than 4.7% on Feb 11., 2025 after it reported upbeat earnings. The corporate reported fourth-quarter 2024 outcomes, whereby the highest and backside traces surpassed the Zacks Consensus Estimate. The corporate’s revenues and earnings per share (EPS) additionally improved yr over yr. The outcomes have benefited from continued enterprise momentum, aided by improved pricing throughout markets.
Coca-Cola reported a comparable EPS of 55 cents within the fourth quarter, up 12% from the year-ago interval. Comparable EPS additionally beat the Zacks Consensus Estimate of 51 cents. Unfavorable foreign money translations damage the comparable EPS by 11 share factors. Comparable currency-neutral earnings per share rose 23% yr over yr.
Discover the most recent EPS estimates and surprises on Zacks Earnings Calendar.
Revenues of $11.5 billion improved 6% yr over yr (due to rising demand for its drinks) and surpassed the Zacks Consensus Estimate of $10.69 billion. Natural revenues rose 14% from the prior-year quarter, largely as a result of greater costs. Coke’s pricing rose 9% within the quarter, 4% of which got here from markets coping with hyperinflation. Rest originated from price hikes and “favorable mix.”
Outlook
Trying to 2025, Coke initiatives natural income will develop 5% to six%. The corporate additionally expects comparable earnings per share will rise 2% to three%, which features a 6% to 7% headwind from foreign money trade and a slight headwind from acquisitions, divestitures and structural adjustments.
“It appears extra doubtless in ’25, there’ll be somewhat extra value and rather less quantity, however there shall be quantity progress,” Coke CEO James Quincey informed analysts, as quoted on CNBC. Coke might additionally face some rising prices in 2025. For instance, President Donald Trump raised tariffs on all aluminum imports to 25%, that are anticipated to enter impact subsequent month (learn: ETFs to Win/Lose as Trump Imposes 25% Tariffs on Steel and Aluminum).
Nonetheless, Quincey mentioned, “if aluminum cans change into costlier, we are able to put extra emphasis on PET [plastic] bottles, et cetera.” Which means that the corporate has already began on the lookout for a option to counter the Trump tariff.
ETFs in Focus
In opposition to this backdrop, traders can maintain a watch on Coca-Cola-heavy exchange-traded funds (ETFs) like iShares U.S. Shopper Staples ETF IYK, Vanguard Shopper Staples ETF VDC, Constancy Covington Belief MSCI Shopper Staples Index ETF FSTA and First Belief Nasdaq Meals & Beverage ETF FTXG. Coca-Cola holds 7% to 10% weight of the fund. ETFs together with VDC, FSTA, IYK and FTXG gained within the vary of 0.6% to 1.5% on Feb. 11, 2025.
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CocaCola Company (The) (KO) : Free Stock Analysis Report
Vanguard Consumer Staples ETF (VDC): ETF Research Reports
iShares U.S. Consumer Staples ETF (IYK): ETF Research Reports
Fidelity MSCI Consumer Staples Index ETF (FSTA): ETF Research Reports
First Trust NASDAQ Food & Beverage ETF (FTXG): ETF Research Reports
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The views and opinions expressed herein are the views and opinions of the creator and don’t essentially replicate these of Nasdaq, Inc.
