Coca-Cola(KO)

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Insights Into Coca-Cola (KO) Q4: Wall Street Projections for Key Metrics
ZACKS· 2025-02-06 15:21
The upcoming report from Coca-Cola (KO) is expected to reveal quarterly earnings of $0.51 per share, indicating an increase of 4.1% compared to the year-ago period. Analysts forecast revenues of $10.69 billion, representing a decrease of 1.5% year over year.Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted downward by 1.5% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.Before a company a ...
Coca-Cola's Growth Continues Ahead of Q4 Earnings: Time to Invest?
ZACKS· 2025-02-06 15:01
Core Viewpoint - The Coca-Cola Company is expected to report year-over-year bottom-line growth for the fourth quarter of 2024, with earnings anticipated at 51 cents per share, reflecting a 4.1% increase from the previous year [1][2]. Financial Performance Expectations - The Zacks Consensus Estimate for fourth-quarter revenues is $10.7 billion, indicating a 1.5% decline from the year-ago quarter [2]. - Coca-Cola has shown a positive earnings surprise trend, with an average surprise of 3.9% over the trailing four quarters and a 4.1% surprise in the last reported quarter [3]. - The company has a Zacks Rank of 3 and an Earnings ESP of +0.35%, suggesting a favorable outlook for earnings [4]. Business Trends and Growth Drivers - Coca-Cola's growth is supported by a robust brand portfolio, investments, and revenue growth across its segments, driven by improved pricing/mix and volume increases [5]. - The company expects a 10% organic revenue growth for 2024, up from the previous guidance of 9-10% [7]. - Comparable currency-neutral EPS is projected to increase by 14-15%, with comparable EPS likely growing 5-6% year-over-year for 2024 [8]. Market Dynamics and Challenges - The fourth quarter is expected to reflect gains from innovations and increased digital investments, with e-commerce growth rates doubling in many countries [9]. - Despite favorable price/mix trends, macroeconomic challenges such as low consumer confidence in China and high inflation in Argentina are anticipated to impact performance [10][11]. - Currency headwinds are expected to influence 2024 revenues by 5%, with additional impacts from acquisitions and divestitures [12]. Stock Performance and Valuation - Coca-Cola's shares have risen by 5.3% over the past year, outperforming the broader industry and Consumer Staples sector [14]. - The stock trades at a forward 12-month P/E multiple of 23.99X, higher than the industry average of 20.48X and the S&P 500's average of 18.93X, indicating a potentially stretched valuation [17][19]. Investment Thesis - Coca-Cola holds over 40% market share in the non-alcoholic beverage market, supported by a diverse product portfolio and strategic focus on innovation and digital expansion [21][22]. - Despite near-term challenges, the company is viewed as a strong long-term buy due to solid profitability and a growing global presence [23].
Coca-Cola (KO) Earnings Expected to Grow: Should You Buy?
ZACKS· 2025-02-04 16:05
Core Viewpoint - Wall Street anticipates a year-over-year increase in earnings for Coca-Cola despite lower revenues, with a focus on how actual results will compare to estimates [1][2]. Earnings Expectations - Coca-Cola is expected to report quarterly earnings of $0.51 per share, reflecting a +4.1% change year-over-year, while revenues are projected to be $10.69 billion, down 1.5% from the previous year [3]. - The earnings report is scheduled for release on February 11, 2025, and could influence stock movement based on whether results exceed or fall short of expectations [2]. Estimate Revisions - The consensus EPS estimate has been revised 1.71% lower in the last 30 days, indicating a reassessment by analysts [4]. - A positive Earnings ESP of +0.35% suggests analysts have recently become more optimistic about Coca-Cola's earnings prospects [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive reading is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [8]. - Coca-Cola has a Zacks Rank of 3, which, along with the positive Earnings ESP, suggests a likelihood of beating the consensus EPS estimate [11]. Historical Performance - Coca-Cola has consistently beaten consensus EPS estimates, achieving this in the last four quarters [13]. - In the last reported quarter, Coca-Cola exceeded expectations by delivering earnings of $0.77 per share against an expected $0.74, resulting in a surprise of +4.05% [12]. Conclusion - While Coca-Cola is positioned as a compelling earnings-beat candidate, other factors may also influence stock performance beyond just the earnings report [14][16].
2 Dividend Kings With Yields Over 3% to Buy Today and Hold Forever
The Motley Fool· 2025-02-03 09:15
Core Insights - The article discusses the importance of reliable dividend stocks for passive income, emphasizing that both yield and growth are crucial for investment value [1] - It highlights the exclusive status of Dividend Kings, which have consistently paid and raised dividends for at least 50 years, showcasing their resilience through various economic challenges [2] Company Analysis: Coca-Cola - Coca-Cola is the largest all-beverage company globally, generating $46.4 billion in trailing-12-month revenue and selling products in 200 countries [4] - The company has a strong distribution model and consistently innovates to meet demand, although it has faced challenges such as a 1% decline in sales and unit volume in the most recent quarter [6] - Coca-Cola's dividend yield is 3.1%, significantly higher than the S&P 500 average of 1.3%, and it has a remarkable track record of raising dividends for 62 consecutive years, making it a reliable long-term investment [8] Company Analysis: Target - Target has struggled in the current macroeconomic environment, particularly in discretionary spending, but has a strong omnichannel network that has helped it adapt [9][10] - Despite challenges, Target reported a 0.3% increase in comparable-store sales and a 2.4% increase in traffic year-over-year in the latest quarter, indicating customer engagement [11] - The company has raised its dividend annually for 53 years, with a current yield of about 3.2%, and is 47% off its five-year high, suggesting potential for recovery and growth [13]
Coca-Cola Is A Strong Buy Headed Into Earnings
Seeking Alpha· 2025-02-02 16:07
Group 1 - Coca-Cola (KO) is expected to report earnings soon, with a favorable setup leading into the report amidst rising uncertainty in US equity markets [2] - The focus of the analysis is on identifying potential winners early in their growth cycles, particularly in the context of growth stocks [3] - The analyst may initiate a long position in Coca-Cola within the next 72 hours, indicating a positive outlook for the stock [4]
Coca-Cola HBC: Strong Growth Profile Means Stock Is Still Attractive
Seeking Alpha· 2025-01-30 15:30
Group 1 - Coca-Cola HBC is a strategic partner of the Coca-Cola Company, holding rights to manufacture and distribute various Coca-Cola products in specific geographic regions [1] - The investment group European Small Cap Ideas focuses on high-quality small-cap investment opportunities in Europe, emphasizing capital gains and dividend income [1] - The group offers two model portfolios: the European Small Cap Ideas portfolio and the European REIT Portfolio, along with weekly updates and educational content [1]
Coca-Cola issues European safety recall over 'excessively high chlorate content'
Fox Business· 2025-01-29 13:02
Core Viewpoint - Coca-Cola has initiated a recall of all variants of several beverages produced in a Belgium facility due to excessively high chlorate content, affecting products in Belgium, Luxembourg, and the Netherlands [1][5]. Product Recall Details - The recall includes cans and bottles of Coca-Cola, Sprite, Fanta, Fuze Tea, Minute Maid, Nalu, Royal Bliss, and Tropico, including zero and light versions [1]. - Affected production codes range from 328 GE to 338 GE [1][2]. Health Concerns - High levels of chlorate in food and drinks could lead to serious health effects, particularly impairing thyroid function and inhibiting iodine uptake, with infants and children being especially vulnerable [6]. - The European Commission indicates that chlorate originates from chlorine disinfectants used in water treatment and food processing [4]. Consumer Guidance - Consumers who purchased the affected products are advised not to consume them and to return them for a refund [5]. - Coca-Cola has stated that an independent expert analysis found the risk to consumers to be very low [7].
1 Reliable Dividend Growth Stock Down 13% to Buy Right Now
The Motley Fool· 2025-01-29 09:00
Company Overview - Coca-Cola is the world's largest beverage company, offering a wide range of products beyond its iconic cola, including bottled water, sports drinks, coffee, and tea [2] - The company has a massive distribution network and significant advertising power, allowing it to act as an industry consolidator by acquiring emerging brands [3] Market Position - Coca-Cola maintains a strong position in the beverage industry, with a 62-year streak of annual dividend increases, categorizing it as a Dividend King [4] - Over the past decade, shareholders have experienced approximately 5% annualized dividend growth [4] Current Challenges - The company is currently facing headwinds due to shifting consumer preferences towards healthier options and the impact of new weight loss drugs on the health and food industries [6] - Coca-Cola's stock has declined by 13% from its all-time high reached last year, leading to a dividend yield of 3.1%, which is average for the stock over the past five years [6][7] Valuation Metrics - The company's price-to-sales, price-to-earnings, and price-to-book value ratios are slightly below their five-year averages, indicating an attractive entry point for investors [7] Long-term Investment Perspective - Paying a fair price for a strong company like Coca-Cola is a reasonable strategy for income investors looking to hold long-term [8] - The company has a history of recovering from larger drawdowns and rewarding shareholders with rising dividends over time [8] Warren Buffett's Endorsement - Warren Buffett has held Coca-Cola stock for decades, emphasizing the importance of focusing on long-term growth rather than short-term price fluctuations [9] - The long-term growth potential of Coca-Cola remains strong, making it a valuable addition to an investment portfolio for those with a long-term perspective [10]
The Most Chosen Consumer Brand on the Planet -- Up 711,600% Since Its IPO -- Is Set to Make History in 2 Weeks
The Motley Fool· 2025-01-27 10:06
Core Viewpoint - Dividend stocks have historically outperformed non-dividend-paying stocks, with Coca-Cola exemplifying a strong dividend growth history and sustainable competitive advantages that support its continued success [4][9][12]. Group 1: Dividend Performance - Dividend stocks delivered a 9.17% annualized return from 1973 to 2023, while nonpayers generated a 4.27% annualized return during the same period [4]. - Coca-Cola has increased its dividend payout for 62 consecutive years, with an expected increase for the 63rd year in February 2024 [9][11]. Group 2: Coca-Cola's Competitive Advantages - Coca-Cola operates in nearly every country, allowing it to leverage growth opportunities in emerging markets while maintaining stable cash flow in developed markets [13]. - The company sells essential consumer goods, ensuring consistent demand regardless of economic conditions, as evidenced by being the world's most-purchased brand for 12 consecutive years [14]. - Coca-Cola's marketing strategies effectively engage diverse consumer demographics, utilizing AI and social media to connect with younger audiences while maintaining appeal to older consumers [15]. Group 3: Financial Outlook - Coca-Cola's payout ratio is projected to be around 65% for 2025, indicating a strong capacity for continued dividend increases [16].
可口可乐:首次覆盖:增长平淡股息欠优,全球对比暂给予中性
海通国际· 2025-01-23 14:47
Investment Rating - The report initiates coverage with a NEUTRAL rating for Coca-Cola Co (KO US) [2][113]. Core Views - The global beverage industry leader, Coca-Cola, is experiencing slowing growth with a focus on price increases to drive revenue, particularly in the carbonated beverage segment, which holds a significant market share in the U.S. [3][117]. - The company's dividend yield is currently less attractive compared to U.S. Treasury yields, leading to a decrease in its relative appeal in the global market [5][120]. - Coca-Cola's strategy includes increasing the dividend payout ratio and engaging in share buybacks to enhance shareholder value amid a low-growth environment [4][121]. Summary by Sections Company Overview - Coca-Cola is the largest non-alcoholic beverage company globally, with a strong presence in the carbonated beverage market, holding a 34.8% market share in the U.S. [3][7]. - The company has a long history and has adapted its business model over time, including a shift towards a lighter asset structure and a focus on brand diversification [8][9]. Financial Performance - Revenue for 2023 is reported at $45.75 billion, with a projected growth of 0.8% in 2024 and 3.0% in 2025 [6][109]. - The company has faced challenges due to the divestment of its bottling operations, but recent price increases have positively impacted profitability, with a gross profit margin expected to rise to over 60% by 2025 [3][88]. Dividend and Share Buyback Strategy - Coca-Cola is known as the "king of dividends," with a historical dividend payout ratio increasing from 50.5% to 73.9% over the past years [4][119]. - The company has a share repurchase plan in place, with a remaining quota of 52.83 million shares valued at approximately $3.29 billion [4][119]. Market Position and Competitive Landscape - The carbonated beverage market is characterized by a duopoly, with Coca-Cola and PepsiCo dominating the space [3][52]. - The company is focusing on expanding its product offerings, including low-sugar and non-carbonated beverages, to adapt to changing consumer preferences [59][64]. Future Outlook - The report forecasts a stable growth trajectory for Coca-Cola, with expected revenue reaching $50.01 billion by 2026, driven by strategic pricing and market expansion [6][112]. - The company is positioned to leverage its strong brand portfolio and market presence to navigate the challenges of a mature market [3][61].