On Tuesday, Coca-Cola reported quarterly earnings in line with expectations, surpassing sales estimates due to higher prices that helped the beverage company offset a decline in volume in North America.
Key details compared to Wall Street expectations, based on an LSEG analyst survey (formerly Refinitiv):
- Adjusted earnings per share: 49 cents (actual) vs. 49 cents (expected)
- Revenue: $10.85 billion (actual) vs. $10.68 billion (expected)
The company’s shares experienced a slight premarket trading increase of less than 1%.
Coca-Cola disclosed fourth-quarter net income of $1.97 billion, or 46 cents per share, a decrease from the previous year’s $2.03 billion, or 47 cents per share. Excluding certain items, the adjusted earnings per share were 49 cents.
Net sales saw a 7% rise to $10.85 billion, with organic revenue (excluding acquisitions and divestitures) increasing by 12% during the quarter.
While the overall unit case volume grew by 2% for the quarter, North American volume contracted by 1%, attributed to decreased demand for water, sports drinks, coffee, and tea.
For the fiscal year 2024, Coca-Cola anticipates organic revenue growth of 6% to 7% and a comparable earnings per share increase of 4% to 5%. The company expects adverse effects from foreign exchange rates on both earnings and revenue throughout the year.
In the first quarter, Coca-Cola foresees a 4% negative impact on comparable revenue due to currency exchange rates. Additionally, the company expects foreign exchange to impede its earnings per share growth, projecting an 8% impact from currency changes during the period.
