Coca-Cola Q4 Earnings Preview: Strong Growth Expected

Key Expectations:

* Revenue: $10.67 billion (vs. $10.85 billion in Q4 2022)
* Adj. EPS: $0.52 (vs. $0.49 in Q4 2022)
* Price/Mix Growth: 6.71% (vs. 9.00% in Q4 2022)
* Unit Case Volume Growth: -0.21% (vs. 2.00% in Q4 2022)

Growth Drivers:

* Gains over rival PepsiCo
* Price/mix increases offsetting headwinds
* Strong performance in emerging markets and new products (e.g., Coke Energy, AHA)

Headwinds:

* Strengthening U.S. dollar
* Potential tariffs and inflation on agricultural commodities
* Lack of product diversification (no food/snack exposure)

Analyst Perspectives:

* Bank of America: Coca-Cola strikes a balance between volume growth and price.
* UBS: Organic revenue growth remains strong, outperforming industry peers.
* CFRA: Emerging market sales and new products support sales growth.
* Risks include foreign currency fluctuations, consumer trends, and lack of diversification.

Industry Context:

* Fast food chains (McDonald's, Burger King, Taco Bell) are promoting value and meal deals, potentially benefiting Coca-Cola.
* Costco is converting its food court beverage offerings from PepsiCo to Coca-Cola.

Conclusion:

Coca-Cola is expected to report strong Q4 earnings, driven by price/mix increases and market share gains. However, headwinds such as currency fluctuations and potential tariffs could impact future growth.