Why Is Coca-Cola (KO) Down 5.3% Since Last Earnings Report?

Core Viewpoint - Coca-Cola's third-quarter 2024 results exceeded earnings and sales estimates, with a year-over-year increase in EPS despite a decline in sales, driven by improved pricing strategies across markets [2][3]. Financial Performance - Comparable EPS for Q3 was 77 cents, a 5% increase from the previous year, surpassing the Zacks Consensus Estimate of 74 cents. Currency translations negatively impacted EPS by 9 percentage points, while currency-neutral EPS rose 13% year over year [3]. - Revenues totaled $11.85 billion, a 1% decline year over year, but exceeded the Zacks Consensus Estimate of $11.61 billion. Organic revenues increased by 9% compared to the prior year [4]. - Comparable operating income rose 3.8% year over year to $3.7 billion, with a comparable operating margin expanding by 104 basis points to 30.7% [5]. Segment Performance - Concentrate sales decreased by 2% year over year, while price/mix improved by 10%, benefiting from higher pricing in inflationary markets [6]. - Unit case volume fell by 1% year over year, with declines in China, Mexico, and Türkiye impacting overall performance [6]. - Sparkling soft drinks and trademark Coca-Cola volumes remained flat year over year, with Coca-Cola Zero Sugar growing by 10% [7]. - Juice, dairy, and plant-based beverage volumes dipped by 3%, while water, sports, coffee, and tea categories saw a 4% decline [8][9]. Regional Insights - Revenue growth was notable in Latin America (11%) and North America (10%), while EMEA revenues declined by 1% and Bottling Investments by 20% [10]. - Organic revenue growth was strong in Latin America (25%) and EMEA (16%), but flat in Global Ventures [11]. Future Guidance - The company anticipates organic revenue growth of 10% for 2024, with a 5% currency headwind expected [12]. - Comparable EPS is projected to grow by 5-6% year over year, with currency headwinds of 9% factored in [13]. - For Q4 2024, comparable revenues are expected to face a 4% currency headwind, and comparable EPS is estimated to include a 10% currency headwind [14]. Market Sentiment - Recent estimates for Coca-Cola have trended downward, indicating a shift in market expectations [15]. - The company currently holds a Zacks Rank 3 (Hold), suggesting an expectation of in-line returns in the near term [17].