Coca-Cola (KO) Anticipates Strong Fourth Quarter, Outpacing Rival PepsiCo (PEP)

Earnings Release and Guidance:

* Release date: Tuesday, before market open
* Expected Q4 revenue: $10.67 billion
* Expected earnings per share: $0.52
* 2025 guidance to be provided

Key Metrics:

* Price/mix increase: 6.71%
* Unit case volume growth: -0.21%
* Organic revenue growth (full year): 10%

Analyst Expectations:

* Strong growth relative to rival PepsiCo (PEP)
* Positive organic revenue growth of mid-single digits
* Continued balance between volume growth and price increases

Market Performance:

* KO shares up 7% in the past year
* Outperforming PepsiCo, which has declined 16%
* Lagging behind the S&P 500 index's 20% gain

Market Factors:

* Cautious consumers
* Less favorable commodity costs
* Challenging trends in international markets

Headwinds:

* Strengthening US dollar
* Potential tariffs and inflation on agriculture commodities

Growth Opportunities:

* Strong sales in emerging markets
* New products like Coke Energy and AHA flavored sparkling water
* Value deals with fast food chains like McDonald's and Costco

Analyst Recommendations:

* Hold on shares, with strong sales in emerging markets and newer products supporting growth
* Risks include foreign currency fluctuations, consumer trends, and lack of product diversification