Coca-Cola Q1 2024 Earnings Preview: Financial Health and Market Impact

Coca-Cola's Upcoming Quarterly Earnings: A Deep Dive into Financial Health

On Tuesday, April 30, 2024, Coca-Cola (KO:NYSE) is poised to unveil its quarterly earnings before the market opens, drawing significant attention from investors and analysts alike. With Wall Street setting the earnings per share (EPS) expectation at $0.69 and forecasting revenue to hit around $10.33 billion, the stakes are high for this beverage giant. This announcement comes at a critical time during the busiest week of the U.S. earnings reporting season, where 175 companies in the S&P 500 index, including behemoths like Apple Inc. and Amazon.com Inc., are also scheduled to report their results. The outcomes of these earnings reports, particularly from companies of such magnitude, are anticipated to sway the market's direction significantly for the quarter.

In light of the bustling earnings season, Zacks Investment Research has spotlighted Coca-Cola's performance, urging investors to look beyond the surface-level figures of EPS and revenue. The report titled "Stay Ahead of the Game With Coke (KO) Q1 Earnings: Wall Street's Insights on Key Metrics" suggests a deeper dive into the company's financials to grasp a fuller picture of its health. Although the analysis stops short of providing specific metrics, it underscores the importance of examining comprehensive financial indicators to truly understand Coca-Cola's standing. This approach is crucial, especially when considering the company's reported quarterly revenue of approximately $10.85 billion, which slightly overshadows the anticipated $10.33 billion.

Coca-Cola's financial performance for the first quarter of 2024, as detailed in the earnings report, showcases a robust picture of the company's operations. With a net income of around $1.97 billion and a gross profit of about $6.22 billion, the company demonstrates its ability to maintain profitability and operational efficiency. The operating income stands at approximately $2.27 billion, with an EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) to match, indicating strong earnings potential before accounting for expenses not directly tied to the core business operations. These figures, coupled with an EPS of $0.46, although below the Wall Street estimate, reflect a solid financial footing.

The cost of revenue, which amounts to about $4.63 billion, and the pre-tax income of approximately $2.48 billion, further elucidate Coca-Cola's financial dynamics. After accounting for an income tax expense of about $509 million, the company's ability to generate profit in a competitive market environment becomes evident. This detailed financial breakdown not only provides investors with a clearer view of Coca-Cola's economic health but also emphasizes the importance of looking beyond headline numbers to assess a company's true performance.

As Coca-Cola (KO) prepares to release its quarterly earnings, the anticipation among investors and market watchers is palpable. The detailed financial metrics and performance indicators serve as a testament to the company's operational success and strategic positioning within the industry. Amidst a week filled with numerous earnings reports from leading companies, Coca-Cola's results will undoubtedly be a focal point for those seeking to understand the broader market trends and the company's role in shaping the economic landscape for the quarter ahead.

Symbol Price %chg
KO.BA 17825 0
PEP.BA 9470 0
CLEO.JK 595 1.68
ADES.JK 12400 3.23
KO Ratings Summary
KO Quant Ranking
Related Analysis

Coca-Cola Edges Past Q1 Profit Estimates, Reaffirms Growth Outlook

Coca-Cola (NYSE:KO) delivered a modest first-quarter beat on earnings but came in slightly below revenue expectations.

The beverage giant reported adjusted earnings of $0.73 per share, just ahead of the $0.72 analyst consensus. Revenue totaled $11.1 billion, narrowly missing forecasts of $11.2 billion.

Organic revenue grew 6% year-over-year, fueled by a 5% rise in pricing and product mix, along with a 1% gain in concentrate sales. Unit case volume rose 2%, with India, China, and Brazil driving much of the growth.

Profitability improved meaningfully, with operating margin expanding to 32.9% from 18.9% a year earlier. On a comparable basis, operating margin rose to 33.8%, helped by strong revenue execution, disciplined cost management, and the timing of marketing investments.

For the full year 2025, Coca-Cola reaffirmed its organic revenue growth target of 5% to 6%. However, the company expects a 5% to 6% currency-related drag on earnings and now forecasts comparable EPS growth of 2% to 3%.

Coca-Cola Edges Past Q1 Profit Estimates, Reaffirms Growth Outlook

Coca-Cola (NYSE:KO) delivered a modest first-quarter beat on earnings but came in slightly below revenue expectations.

The beverage giant reported adjusted earnings of $0.73 per share, just ahead of the $0.72 analyst consensus. Revenue totaled $11.1 billion, narrowly missing forecasts of $11.2 billion.

Organic revenue grew 6% year-over-year, fueled by a 5% rise in pricing and product mix, along with a 1% gain in concentrate sales. Unit case volume rose 2%, with India, China, and Brazil driving much of the growth.

Profitability improved meaningfully, with operating margin expanding to 32.9% from 18.9% a year earlier. On a comparable basis, operating margin rose to 33.8%, helped by strong revenue execution, disciplined cost management, and the timing of marketing investments.

For the full year 2025, Coca-Cola reaffirmed its organic revenue growth target of 5% to 6%. However, the company expects a 5% to 6% currency-related drag on earnings and now forecasts comparable EPS growth of 2% to 3%.

Coca-Cola Gets a Boost from Weaker Dollar and fairlife Momentum, Says CFRA

CFRA raised its 12-month price target on Coca-Cola (NYSE:KO) to $80 from $68, maintaining a Buy rating as favorable currency dynamics and domestic brand strength position the beverage giant for upside.

While earnings estimates remain unchanged, CFRA sees the recent decline in the U.S. dollar as a significant catalyst for Coca-Cola’s bottom line. With 61% of its revenue generated outside the U.S., a weaker dollar improves international profitability when converted back into U.S. dollars. In 2024, U.S. revenue grew 11% year-over-year, while international sales dipped 2%, highlighting domestic resilience.

The firm also points to Coca-Cola’s fairlife brand as a key, underappreciated growth engine. Annual sales have already surpassed $1 billion, and expansion is set to accelerate with the completion of a $650 million production facility in New York later this year.

Despite ongoing debates around health-related policy shifts and tariff risks, CFRA believes those concerns are already priced in. With a healthy dividend yield supporting long-term returns, Coca-Cola is seen as a solid opportunity for investors seeking both growth and income.

Coca-Cola Gets a Boost from Weaker Dollar and fairlife Momentum, Says CFRA

CFRA raised its 12-month price target on Coca-Cola (NYSE:KO) to $80 from $68, maintaining a Buy rating as favorable currency dynamics and domestic brand strength position the beverage giant for upside.

While earnings estimates remain unchanged, CFRA sees the recent decline in the U.S. dollar as a significant catalyst for Coca-Cola’s bottom line. With 61% of its revenue generated outside the U.S., a weaker dollar improves international profitability when converted back into U.S. dollars. In 2024, U.S. revenue grew 11% year-over-year, while international sales dipped 2%, highlighting domestic resilience.

The firm also points to Coca-Cola’s fairlife brand as a key, underappreciated growth engine. Annual sales have already surpassed $1 billion, and expansion is set to accelerate with the completion of a $650 million production facility in New York later this year.

Despite ongoing debates around health-related policy shifts and tariff risks, CFRA believes those concerns are already priced in. With a healthy dividend yield supporting long-term returns, Coca-Cola is seen as a solid opportunity for investors seeking both growth and income.

Coca-Cola Rises 3% on Strong Q4 Earnings, Pricing Strategy Boosts Demand

Coca-Cola (NYSE:KO) delivered better-than-expected fourth-quarter earnings, as strategic pricing and product innovation helped drive an unexpected rise in global volumes. The results lifted the soda giant’s stock more than 3% intra-day today.

The company’s focus on higher-priced beverages and packaging adjustments—such as slimmer 12-ounce cans—has helped maintain demand, particularly in the U.S., where budget-conscious consumers have been more selective with their spending. This strategy supported growth in premium offerings like sparkling flavors, juices, plant-based drinks, and value-added dairy.

North America unit case volume increased by 1%, with regional revenue surging 16%. However, this strength was partially offset by flat volumes in Europe, the Middle East, and Africa, where supply chain disruptions—particularly in the Middle East—posed challenges.

Globally, unit case volume expanded by 2%, defying expectations of a slight decline. Notably, China, which has struggled with sluggish post-pandemic consumer demand in recent quarters, contributed to the volume growth.

Financially, Coca-Cola posted comparable earnings per share of $0.55, marking a 12% increase from the prior year and beating analyst estimates of $0.52. Revenue climbed 6% year-over-year to $11.50 billion, also surpassing expectations.

Looking ahead, Coca-Cola projects organic revenue growth of 5% to 6% for fiscal 2025, slightly below the 7.09% analysts had anticipated. Comparable EPS is expected to grow 2% to 3%, reaching a range of $2.94 to $2.97, aligning closely with Wall Street estimates of $2.95.

Coca-Cola Rises 3% on Strong Q4 Earnings, Pricing Strategy Boosts Demand

Coca-Cola (NYSE:KO) delivered better-than-expected fourth-quarter earnings, as strategic pricing and product innovation helped drive an unexpected rise in global volumes. The results lifted the soda giant’s stock more than 3% intra-day today.

The company’s focus on higher-priced beverages and packaging adjustments—such as slimmer 12-ounce cans—has helped maintain demand, particularly in the U.S., where budget-conscious consumers have been more selective with their spending. This strategy supported growth in premium offerings like sparkling flavors, juices, plant-based drinks, and value-added dairy.

North America unit case volume increased by 1%, with regional revenue surging 16%. However, this strength was partially offset by flat volumes in Europe, the Middle East, and Africa, where supply chain disruptions—particularly in the Middle East—posed challenges.

Globally, unit case volume expanded by 2%, defying expectations of a slight decline. Notably, China, which has struggled with sluggish post-pandemic consumer demand in recent quarters, contributed to the volume growth.

Financially, Coca-Cola posted comparable earnings per share of $0.55, marking a 12% increase from the prior year and beating analyst estimates of $0.52. Revenue climbed 6% year-over-year to $11.50 billion, also surpassing expectations.

Looking ahead, Coca-Cola projects organic revenue growth of 5% to 6% for fiscal 2025, slightly below the 7.09% analysts had anticipated. Comparable EPS is expected to grow 2% to 3%, reaching a range of $2.94 to $2.97, aligning closely with Wall Street estimates of $2.95.

Coca-Cola Upgraded to Buy as Growth Potential Aligns with Attractive Valuation

TD Cowen analysts upgraded Coca-Cola (NYSE:KO) to Buy from Hold, maintaining a price target of $75 on the stock. The upgrade reflects confidence in Coca-Cola’s ability to sustain strong performance across multiple markets and capitalize on long-term growth opportunities, particularly in international markets.

The analysts raised the fiscal 2025 organic sales growth estimate to 6%, at the high end of Coca-Cola’s long-term growth projections. This optimism is based on the company’s exceptional execution in key regions, even amidst temporary challenges. The recent pullback in Coca-Cola’s stock, driven by concerns over a temporary slowdown in third-quarter volumes and uncertainties around new U.S. trade policies and foreign exchange impacts, is seen as an overreaction.

According to the analysts, Coca-Cola remains well-positioned to benefit from increasing per capita beverage consumption globally, offering significant growth potential in emerging markets.