Coca-Cola Surpasses Expectations in Q4 Earnings

By Patricia Miller

Feb 12, 2025

2 min read

Coca-Cola's Q4 results exceed expectations, showcasing robust growth and resilience as it gains market share.

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#What You Need To Know

Coca-Cola's fourth-quarter earnings exceeded expectations, reporting revenue of $11.5 billion against an anticipated $10.67 billion, along with an adjusted earnings-per-share of $0.55, surpassing the expected $0.52. The company experienced impressive price/mix growth of 9% and unit case volume growth of 2%, both outperforming forecasts. For the full year, Coca-Cola achieved a 12% organic revenue growth, driven by strategic pricing that mitigated challenges from cautious consumer spending and fluctuating commodity costs.

Looking ahead for 2025, the company anticipates organic revenue growth between 5% and 6% and adjusted earnings growth of 2% to 3%. Coca-Cola's stock has increased by 7% over the past year, marking a contrast to PepsiCo's 16% decline, while the S&P 500 has grown by 20%.

Notably, Coca-Cola is gaining market share over PepsiCo by effectively balancing volume and pricing strategies, with strong performance in different regional markets, particularly in Latin America and North America, where specific product segments demonstrated notable growth.

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#Why This Is Important for Retail Investors

  1. Strong Earnings Performance: Coca-Cola exceeded revenue and earnings expectations, demonstrating financial stability and potential for continued growth.

  2. Market Share Gains: The company is outperforming PepsiCo, showing competitive strength and effective pricing strategies that could drive further stock appreciation.

  3. Dividend Stability and Growth: Consistent revenue and earnings growth reinforce Coca-Cola’s position as a reliable dividend stock, attracting income-focused investors.

  4. Stock Performance and Outlook: Shares increased 7% over the past year but still trail the S&P 500. Growth projections for 2025 suggest steady performance, making it a defensive option in uncertain markets.

#Relevant ETFs

Some investors prefer to invest in stocks via an exchange-traded fund for ease and reduced risk. Some relevant ETFs include the following:

  • SPDR S&P 500 ETF Trust

  • Invesco QQQ Trust

  • Vanguard Consumer Staples ETF

  • iShares Global Consumer Staples ETF

  • XLP Consumer Staples Select Sector SPDR Fund

  • iShares U.S. Consumer Goods ETF

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Important Notice And Disclaimer

This article does not provide any financial advice and is not a recommendation to deal in any securities or product. Investments may fall in value and an investor may lose some or all of their investment. Past performance is not an indicator of future performance.

Patricia Miller does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the above article.

Patricia Miller has not been paid to produce this piece by the company or companies mentioned above.

Digitonic Ltd, the owner of ValueTheMarkets.com, does not hold a position or positions in the stock(s) and/or financial instrument(s) mentioned in the above article.

Digitonic Ltd, the owner of ValueTheMarkets.com, has not been paid for the production of this piece by the company or companies mentioned above.