Tap Coke-Heavy ETFs on Upbeat Earnings and Guidance

Core Insights - The Coca-Cola Company reported first-quarter 2025 results with revenues of $11.13 billion, a 2% decline year over year, but earnings per share (EPS) improved to 73 cents, up 1% from the previous year [1][3] - Organic revenues increased by 6% year over year, driven by growth across all segments, and the results exceeded the Zacks Consensus Estimate for both revenues and EPS [1][3] - The company maintained its full-year guidance for 2025, expecting organic revenue growth of 5% to 6% and comparable EPS growth of 2% to 3% [3] Revenue and Earnings Performance - Coca-Cola's revenues of $11.13 billion slightly surpassed the Zacks Consensus Estimate of $11.12 billion despite a 2% year-over-year decline [1] - Comparable EPS of 73 cents beat the Zacks Consensus Estimate of 71 cents, with currency-neutral earnings per share rising 6% year over year [3] - Unfavorable currency translations negatively impacted comparable EPS by 5 percentage points [3] Business Strategy and Market Conditions - The results reflect the strength of Coca-Cola's resilient, all-weather strategy, supported by enhanced pricing across markets [2] - The company noted potential cost increases for aluminum and orange juice due to ongoing trade wars, although its operations are primarily local [4] - Coca-Cola anticipates facing tough year-over-year comparisons in the second quarter, as the previous year marked its strongest period [4] Investment Opportunities - Investors may consider Coca-Cola-heavy exchange-traded funds (ETFs) such as iShares U.S. Consumer Staples ETF (IYK), Vanguard Consumer Staples ETF (VDC), Fidelity Covington Trust MSCI Consumer Staples Index ETF (FSTA), and First Trust Nasdaq Food & Beverage ETF (FTXG), which have 8% to 11% exposure to Coca-Cola shares [5]