Coca-Cola Stock Rises 3% as Earnings & Revenues Beat Estimates

Core Insights - The Coca-Cola Company reported fourth-quarter 2024 results with revenues and earnings per share (EPS) exceeding expectations, driven by strong business momentum and improved pricing across markets [1][3]. Financial Performance - Comparable EPS for the fourth quarter was 55 cents, a 12% increase year over year, surpassing the Zacks Consensus Estimate of 51 cents [2]. - Revenues reached $11.5 billion, a 6% year-over-year improvement, exceeding the Zacks Consensus Estimate of $10.69 billion [3]. - Organic revenues rose 14% compared to the prior-year quarter, with revenue growth across all operating segments except Bottling Investments [3]. Volume and Pricing Dynamics - Concentrate sales increased by 5% year over year, with a 9% improvement in price/mix, benefiting from higher pricing in inflationary markets [5]. - Total unit case volume rose 2% year over year, driven by growth in China, Brazil, and the United States [7]. - The sparkling soft drinks category saw a 2% increase in unit case volume, with Coca-Cola Zero Sugar advancing 13% [8]. Segment Performance - Reported revenues grew 10% in Latin America, 16% in North America, 6% in EMEA, 9% in the Asia Pacific, while Bottling Investments saw a 23% decline [11]. - Organic revenues improved significantly across various regions, with Latin America showing a 25% increase [11]. Margin Analysis - Operating income increased by 19% year over year to $2.71 billion, with a comparable operating income rise of 8% to $2.73 billion [12]. - The operating margin expanded to 23.5%, up 252 basis points from the prior year, with comparable currency-neutral operating margin reaching 25.8% [13]. Future Guidance - For 2025, the company anticipates organic revenue growth of 5-6% and comparable EPS growth of 2-3% from the $2.88 reported in 2024 [14][15]. - The guidance includes expected currency headwinds and impacts from acquisitions and divestitures [15][16].