Coca-Cola reported an EPS of $0.77, beating the estimated $0.746 and marking a 5% increase year-on-year.
The company’s revenue for the quarter was $11.95 billion, surpassing the estimated $11.61 billion.
Adjusted operating margin improved to 30.7%, despite challenges from currency headwinds and a decline in unit case volume.
Coca-Cola (NYSE:KO) is a leading player in the global beverage industry, known for its iconic soft drinks. The company operates in the Zacks Beverages – Soft Drinks industry and competes with other major brands like PepsiCo. Coca-Cola’s financial performance is closely watched by investors, given its significant market presence and brand recognition.
On October 23, 2024, Coca-Cola reported earnings per share (EPS) of $0.77, surpassing the estimated $0.746. This marks a 5% increase from the $0.74 EPS reported in the same quarter last year. The earnings surprise for this quarter is 4.05%, as highlighted by Zacks. In the previous quarter, Coca-Cola also exceeded expectations with an EPS of $0.84, resulting in a 5% surprise.
Coca-Cola’s revenue for the quarter ending September 2024 was approximately $11.95 billion, exceeding the estimated $11.61 billion. However, this represents a 1% year-on-year sales decline. The revenue performance was characterized by a 10% growth in price/mix, although there was a 2% decline in concentrate sales due to shipment timing. Despite this, Coca-Cola has consistently surpassed consensus revenue estimates over the past four quarters.
The company’s adjusted operating margin improved to 30.7% from 29.7% the previous year, despite a $919 million charge related to the remeasurement of contingent consideration liability from the 2020 acquisition of Fairlife and currency headwinds. Coca-Cola’s strategic pricing adjustments helped offset a decline in unit case volume, which saw a 1% decrease. Growth in markets like Brazil, the Philippines, and Japan was offset by declines in China, Mexico, and Turkey.
Coca-Cola’s stock experienced a downturn despite surpassing profit expectations, largely due to a significant price increase that counterbalanced the unexpected decline in unit case volume. The company’s financial metrics, such as a price-to-earnings (P/E) ratio of 27.39 and a debt-to-equity ratio of 1.69, provide insight into its market valuation and leverage level. Looking ahead, Coca-Cola anticipates a 10% organic revenue growth in the fourth quarter.