The Coca-Cola Company (KO – Free Report) shares rose more than 4.7% on Feb 11., 2025 after it reported upbeat earnings. The company reported fourth-quarter 2024 results, wherein the top and bottom lines surpassed the Zacks Consensus Estimate. The company’s revenues and earnings per share (EPS) also improved year over year. The results have benefited from continued business momentum, aided by improved pricing across markets.
Coca-Cola reported a comparable EPS of 55 cents in the fourth quarter, up 12% from the year-ago period. Comparable EPS also beat the Zacks Consensus Estimate of 51 cents. Unfavorable currency translations hurt the comparable EPS by 11 percentage points. Comparable currency-neutral earnings per share rose 23% year over year.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Revenues of $11.5 billion improved 6% year over year (thanks to rising demand for its drinks) and surpassed the Zacks Consensus Estimate of $10.69 billion. Organic revenues rose 14% from the prior-year quarter, largely due to higher prices. Coke’s pricing rose 9% in the quarter, 4% of which came from markets dealing with hyperinflation. Rest originated from price hikes and “favorable mix.”
Outlook
Looking to 2025, Coke projects organic revenue will grow 5% to 6%. The company also expects comparable earnings per share will rise 2% to 3%, which includes a 6% to 7% headwind from currency exchange and a slight headwind from acquisitions, divestitures and structural changes.
“It seems more likely in ’25, there’ll be a little more price and a little less volume, but there will be volume growth,” Coke CEO James Quincey told analysts, as quoted on CNBC. Coke could also face some rising costs in 2025. For example, President Donald Trump raised tariffs on all aluminum imports to 25%, which are expected to go into effect next month (read: ETFs to Win/Lose as Trump Imposes 25% Tariffs on Steel and Aluminum).
However, Quincey said, “if aluminum cans become more expensive, we can put more emphasis on PET [plastic] bottles, et cetera.” This means that the company has already started looking for a way to counter the Trump tariff.
ETFs in Focus
Against this backdrop, investors can keep a watch on Coca-Cola-heavy exchange-traded funds (ETFs) like iShares U.S. Consumer Staples ETF (IYK – Free Report) , Vanguard Consumer Staples ETF (VDC – Free Report) , Fidelity Covington Trust MSCI Consumer Staples Index ETF (FSTA – Free Report) and First Trust Nasdaq Food & Beverage ETF (FTXG – Free Report) . Coca-Cola holds 7% to 10% weight of the fund. ETFs including VDC, FSTA, IYK and FTXG gained in the range of 0.6% to 1.5% on Feb. 11, 2025.
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