Coca-Cola Downplays Aluminum Tariff Impact, Reports Strong Earnings
Coca-Cola (KO) remains unfazed by the 25% tariff on aluminum imports, assuring consumers that it won't lead to immediate price increases. CFO John Murphy describes the higher aluminum prices as "a relatively small amount" of the company's overall supply chain.
Murphy emphasizes the company's adaptability, stating that they have "a lot of levers" at their disposal to manage costs. He also highlights their ongoing innovation, including introducing different can sizes and variations, as part of their revenue growth initiatives.
Coca-Cola's latest earnings report exceeded analysts' estimates, with revenue reaching $11.5 billion and earnings per share at $0.55. Higher price/mix and increased unit case volume contributed significantly to these positive results.
The company forecasts 5-6% organic revenue growth and 2-3% adjusted earnings growth in 2025. While the strengthening dollar could negatively impact earnings by 6-7%, Coca-Cola remains confident in its operations.
JPMorgan analyst Andrea Teixeira praises the company's strong organic sales growth and earnings per share guidance, suggesting it will support a bullish outlook. Brooke DiPalma, senior reporter for Yahoo Finance, provides in-depth coverage of the stock market, including events that influence market movements.