Coca-Cola Anticipates Strong Q4 on Rival PepsiCo's Heels
Financial Expectations for Q4:
* Revenue: $10.67 billion
* Adjusted EPS: $0.52
* Price/Mix Growth: 6.71%
* Unit Case Volume Growth: -0.21%
Analyst Commentary:
* Bank of America analyst Bryan Spillane highlights Coca-Cola's balance between volume growth and price, with expected organic revenue growth of 10% for the year.
* UBS analyst Peter Grom emphasizes the company's ability to deliver strong organic revenue growth despite global headwinds.
* CFRA analyst Garrett Nelson expects emerging markets and new products to drive sales, but notes potential risks from foreign currency and lack of diversification.
Key Indicators to Watch:
* Latin America market performance, which Spillane believes could indicate the outlook for 2025.
* Impact of exchange rate volatility and inflation on agricultural commodities.
* Potential for continued earnings growth, despite dollar strength concerns.
Recent Developments:
* Coca-Cola plans to provide 2025 guidance and issue its fourth-quarter earnings report on Tuesday before market open.
* The company played a role in McDonald's $5 meal bundle and is regaining food court fountain business from PepsiCo at Costco.
Market Performance:
* Coca-Cola shares have risen 7% in the past year, trailing the S&P 500's 20% gain but outperforming PepsiCo's 16% decline.