Coca-Cola(US:KO) ZACKS·2025-10-21 18:21Core Insights - The Coca-Cola Company reported third-quarter 2025 results that exceeded expectations, with both revenues and earnings per share (EPS) showing year-over-year improvement, driven by strong business momentum and enhanced pricing strategies [1][2][3] Financial Performance - Comparable EPS for the third quarter was 82 cents, a 6% increase from the previous year, surpassing the Zacks Consensus Estimate of 78 cents [2] - Revenues reached $12.46 billion, reflecting a 5% year-over-year growth and beating the Zacks Consensus Estimate of $12.43 billion [3] - Organic revenues grew by 6% year over year, supported by growth across all segments and improved price/mix [3][7] Market Share and Volume - Coca-Cola gained a global value share in the non-alcoholic ready-to-drink beverages category, particularly in Brazil and Argentina [3] - Total unit case volume increased by 1% year over year, with notable growth in Central Asia, North Africa, Brazil, and the U.K. [8] Segment Performance - North America reported a 4% increase in revenues, while the Asia Pacific and EMEA regions saw growth of 11% and 10%, respectively [13] - The sparkling soft drinks category's unit case volume remained flat, but Coca-Cola Zero Sugar saw a significant 14% increase [10] Margin Analysis - The operating margin improved to 32%, up from 21.2% in the prior year, driven by effective cost management and favorable price/mix [15] - Operating income soared 59% year over year to $3.98 billion, with comparable operating income rising 8% to $3.96 billion [14] Guidance for 2025 - The company reiterated its organic revenue growth guidance of 5-6% for 2025, with comparable EPS expected to grow by 3% from $2.88 reported in 2024 [16][17] - Anticipated adjusted free cash flow for 2025 is at least $9.8 billion, with capital expenditures projected at $2.2 billion [18]