Coca-Cola(US:KO) The Motley Foolยท2025-02-11 22:49Core Insights - Coca-Cola's stock experienced a significant increase of 4.7% following the release of its fourth-quarter results, which surpassed Wall Street expectations [1][2]. Financial Performance - The company reported non-GAAP adjusted earnings per share of $0.55 on sales of approximately $11.5 billion for the fourth quarter, exceeding analyst estimates of $0.52 per share and $11.42 billion in sales [2]. - Revenue grew by 6.5% year over year in the fourth quarter, while adjusted earnings per share rose by 12% compared to the previous year [3]. - Currency-adjusted operating income saw a substantial increase of 22% compared to Q4 of the prior year [3]. Growth Drivers - The strong performance was primarily attributed to pricing increases and robust results in key geographic segments, with organic revenue growth of 14%, significantly outpacing the expected growth of around 7% [4]. - The company achieved broad-based market share gains in key product categories and continued to improve margins [5]. Future Guidance - For the current year, Coca-Cola is guiding for adjusted organic revenue growth between 5% and 6%, which is lower than the unexpectedly strong performance in Q4 [6]. - Management anticipates adjusted earnings per share to increase between 8% and 10%, with projected adjusted free cash flow of approximately $9.5 billion, a notable improvement from $4.7 billion last year [7]. Valuation - Following the recent gains, Coca-Cola's stock is trading at about 23 times this year's expected earnings, which may not appear particularly cheap, but it offers a reliable dividend as an industry leader [8].