Core Insights - Coca-Cola reported second-quarter 2025 results with earnings per share (EPS) of 87 cents, surpassing the Zacks Consensus Estimate of 83 cents, reflecting a 4% year-over-year increase [3] - Revenues of $12.54 billion grew 1% year over year but fell short of the consensus estimate of $12.59 billion, with organic revenues rising 5% [4][11] - The company anticipates organic revenue growth of 5-6% for 2025 and expects comparable EPS growth of 3% from the $2.88 reported in 2024 [11][12] Financial Performance - Comparable EPS increased by 4% year over year, while comparable currency-neutral EPS rose by 9% [3] - Operating income surged 63% year over year to $4.28 billion, with a comparable operating margin expanding to 34.7% [8] - Total unit case volume fell 1% year over year, with declines in Mexico, India, and Thailand offsetting growth in Central Asia, Argentina, and China [5] Segment Analysis - North America and Asia Pacific reported a 3% revenue increase, while EMEA improved by 5%, but Latin America and Bottling Investments saw declines of 4% and 8%, respectively [9] - Coca-Cola Zero Sugar saw a significant volume increase of 14%, while the sparkling soft drinks category volume dipped by 1% [6][7] Guidance and Outlook - Management has reiterated its organic revenue guidance for 2025, with an underlying effective tax rate expected to be 20.8% [11] - Comparable currency-neutral EPS for 2025 is projected to increase by 8% year over year, with currency headwinds expected to impact results [12] - The stock has a Zacks Rank 3 (Hold), indicating an expectation of in-line returns in the coming months [16] Industry Comparison - Coca-Cola's performance is compared to PepsiCo, which reported revenues of $22.73 billion for the quarter ended June 2025, reflecting a year-over-year change of +1% [17] - PepsiCo's EPS for the same period was $2.12, down from $2.28 a year ago, with a Zacks Rank 2 (Buy) indicating a more favorable outlook compared to Coca-Cola [18]

Core Insights - Coca-Cola's shares increased by 12.1% in February 2025, driven by a strong Q4 earnings report and a dividend increase [1][4] - Q4 sales rose 6.4% year over year to $11.5 billion, surpassing analyst expectations of $10.7 billion [2] - Organic sales grew by 14% year over year, despite currency fluctuations and higher ingredient costs [3] Financial Performance - Adjusted earnings per share rose 12% to $0.55, exceeding the analyst consensus of $0.52 [4] - The company generated $3.2 billion in free cash flow, with 64% allocated to dividends [4] - The quarterly dividend was increased from $0.485 to $0.51 per share, marking a continuous annual increase since 1962 [5][6] Business Strategy - Coca-Cola is expanding its cold drink equipment by adding 250,000 net new stores and nearly 600,000 new beverage coolers, enhancing its distribution network [8] - The company's robust product portfolio and distribution capabilities help mitigate currency effects and maintain competitive advantages [7] Stock Valuation - Coca-Cola shares trade at 28 times trailing earnings and 6.5 times sales, offering a dividend yield of 2.9% [9]