Coca-Cola Reports Strong Q4, Outperforming PepsiCo and Market Expectations

In its fourth-quarter earnings report, released pre-market on Tuesday, Coca-Cola (KO) beat Street estimates across the board.

Key Financials:

* Revenue: $11.5 billion (vs. estimate of $10.67 billion)
* Earnings per Share (EPS): $0.55 (vs. estimate of $0.52)

Growth Drivers:

* Higher price/mix: +9%
* Unit case volume: +2%

Management Commentary:

CEO James Quincey highlighted the company's ability to "lead through dynamic external environments," leveraging its global scale and local expertise to capture opportunities.

Analyst Opinions:

* Bank of America analyst Bryan Spillane commended Coca-Cola's "decent balance between volume growth and price."
* UBS analyst Peter Grom lauded Coca-Cola's "strong positive mid-single-digit organic revenue growth," outperforming many consumer staples peers.

Growth Outlook:

For 2025, Coca-Cola anticipates organic revenue growth of 5% to 6% and adjusted earnings growth of 2% to 3%.

Regional Performance:

* Latin America: Net revenue grew 3% in Q4, with price/mix and unit case volume up 23% and 2%, respectively.
* North America: Unit case volume increased 1%, driven by growth in sparkling flavors, juice, and plant-based beverages.

Challenges:

* Potential tariffs and inflation on agriculture commodities, including orange juice prices.

Industry News:

* Fast food chains like McDonald's, Burger King, and Taco Bell have partnered with Coca-Cola to boost foot traffic.
* Costco will transition its food court fountain business back to Coca-Cola from PepsiCo.