Coca-Cola fourth-quarter income beats estimates, lifting shares in soda giant
Investing.com - Coca-Cola's fourth-quarter income topped estimates, as the soda giant's moves to entice shoppers to purchase their higher-priced beverages helped to spur on an unexpected rise in volumes.
Shares in the group rose by more than 3% in early U.S. trading on Tuesday.
Coca-Cola (NYSE: KO ) has been rolling out slimmer 12-ounce cans in order to bolster sales in the U.S., where cost-conscious shoppers have recently been more cautious around their spending on soft drinks in order to save up for pricier purchases.
Analysts have credited the strategy for helping support demand in the U.S. for Coca-Cola's more expensive offerings like sodas and juices.
North America unit case volume increased by 1% for the three months ended on December 31, driven by rising demand for sparkling flavors, juice, value-added dairy offerings, plant-based drinks and Coca-Cola's eponymous brand, the firm said. Reported net revenues in the region climbed by 16%.
Still, the strength was offset by flat volumes in Europe, the Middle East, and Africa. Coca-Cola has previously flagged that conflicts in the Middle East in particular were weighing on supplies.
Globally, unit case volume expanded by 2%, compared with expectations that the figure would contract 0.21%. Coca-Cola noted that China, which has been hit in past quarters by sluggish consumer demand during a slow post-pandemic economic recovery, helped lead the number higher.
Comparable earnings per share for the quarter grew by 12% versus the year-ago period to $0.55, topping Bloomberg consensus estimates of $0.52. Quarterly revenue came in at $11.50 billion, up by 6% year-on-year.
For the 2025 fiscal year, Coca-Cola expects to deliver organic revenue growth of 5% to 6%, compared to projections of 7.09%. Comparable earnings per share are also seen growing by 2% to 3% from $2.88 in 2024, indicating a range of $2.94 to $2.97. Wall Street forecasts had called for $2.95.
"[The] stronger than anticipated [full-year 2025] guidance makes sense given the strong [fourth-quarter] organic sales exit rate," analysts at BofA said in a note to clients.
Earlier this month, rival PepsiCo (NASDAQ: PEP ) posted a weaker-than-anticipated annual forecast, due in large part to tepid spending by customers in the U.S. and increased promotional activity.