Coca-Cola Expects Minimal Impact from Aluminum Tariffs, Focuses on Innovation

Key Points:

* CFO John Murphy dismisses concerns over aluminum tariff's impact on Coke production costs.
* Company emphasizes its ability to manage input costs within its supply chain.
* Consumers will not experience higher prices in the near future.
* Coca-Cola innovates with new product sizes and packaging to drive revenue growth.
* Tariffs seen as another manageable variable, with the company adapting its strategy accordingly.

Earnings Highlights:

* Fourth quarter revenue exceeds expectations, reaching $11.5 billion.
* Earnings per share of $0.55 surpasses estimates of $0.52.
* Growth driven by higher prices (9%) and increased unit case volume (2%).
* Company anticipates 5-6% organic revenue growth and 2-3% adjusted earnings growth in 2025.

Market Reaction:

* Coca-Cola shares surge over 4% following earnings report.
* JPMorgan analysts praise strong organic sales and conservative guidance.

Analysts' Perspectives:

* CFRA analyst Garrett Nelson highlights the potential negative impact of currency fluctuations on earnings.
* Nelson emphasizes Coca-Cola's significant international revenue, where the strengthening dollar poses a challenge.