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

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 (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%.

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 (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 (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.

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.