Latest news with #KO
Yahoo
15 hours ago
- Business
- Yahoo
Coca-Cola Beats on Earnings in Q2, But Falls Short on Revenues
The Coca-Cola Company KO has reported second-quarter 2025 results, with the bottom line surpassing the Zacks Consensus Estimate. Meanwhile, the top line missed the consensus mark. The company's revenues and earnings per share (EPS) improved year over year. The results have benefited from continued business momentum, aided by enhanced pricing across markets. This quarter's results once again highlight the strength of KO's resilient, all-weather reported a comparable EPS of 87 cents in the second quarter, up 4% from the year-ago period. Comparable EPS also beat the Zacks Consensus Estimate of 83 cents. Unfavorable currency translations hurt the comparable EPS by 5 percentage points. Comparable currency-neutral earnings per share rose 9% year over of $12.54 billion grew 1% year over year but missed the Zacks Consensus Estimate of $12.59 billion. Organic revenues rose 5% from the prior-year quarter, led by growth across all segments, except for Bottling Investments. Coca-Cola's reported revenues benefited from growth across most operating segments, except for Latin America and Bottling Investments. The improved price/mix in the quarter was offset by lower concentrate sales and adverse currency the second quarter of 2025, KO gained a global value share in the total non-alcoholic ready-to-drink beverages of Coca-Cola dipped nearly 1% in the pre-market trading session following the mixed second-quarter results. The Zacks Rank #2 (Buy) stock has risen 12.6% in the year-to-date period compared with the industry's growth of 6.7%. Image Source: Zacks Investment Research Detailed Picture of KO's Q2 Volume & Pricing In the reported quarter, concentrate sales were down 1% year over year, while the price/mix improved 6%. The price/mix benefited from pricing actions across the marketplace and a favorable mix. The impacts of high-inflation markets were lower in second-quarter 2025 compared with the same period last year. In the second quarter, concentrate sales were in line with unit case volume. Coca-Cola's total unit case volume fell 1% year over year in the second quarter, led by declines in Mexico, India and Thailand, which more than offset growth in Central Asia, Argentina and model predicted year-over-year organic revenue growth of 4.9% for the second quarter, with a 5.8% gain from the price/mix and a 0.9% decline in the concentrate sales volume. CocaCola Company (The) Price, Consensus and EPS Surprise CocaCola Company (The) price-consensus-eps-surprise-chart | CocaCola Company (The) Quote Coming to the cluster-category performance, the unit case volume dipped 1% year over year for the sparkling soft drinks category. The trademark Coca-Cola's unit volume dropped 1%, led by a decline in Latin America, offset by growth in EMEA. Coca-Cola Zero Sugar advanced 14%, aided by growth in all geographic operating segments. The sparkling flavors category declined 2% year over year, backed by a decline in the Asia Pacific, offset by growth in for juice, value-added dairy and plant-based beverages was down 4% in the second quarter, led by growth in the Asia Pacific, offset by an improvement in Latin volume for the water, sports, coffee and tea category was flat year over year in the second quarter. Coca-Cola witnessed flat volume growth in the water category, as improvement in EMEA and the Asia Pacific was fully offset by a decline in Latin America. Sports drinks fell 3%, driven by declines in Latin America, negated by gains in North America. The coffee business rose 1% due to growth in the Asia Pacific. The tea volume was flat, backed by growth in EMEA, offset by declines in North America. Peek Into KO's Segmental Details Reported revenues rose 3% year over year each for North America and the Asia Pacific, and improved 5% for EMEA. However, revenues declined 4% for Latin America and 8% for Bottling Investments. Organic revenues improved 13% year over year in Latin America, 3% in North America, 4% in EMEA and 5% in the Asia Pacific. Meanwhile, organic revenues were down 2% in Bottling Investments. Analyzing Coca-Cola's Q2 Margins In dollar terms, the operating income surged 63% year over year to $4.28 billion, including a 6-point impact of currency headwinds. Comparable operating income rose 8.5% year over year to $4.38 billion. Comparable currency-neutral operating income advanced 15% on strong organic revenue growth across most segments, effective cost management and the timing of marketing operating margin of 34.1% in the second quarter expanded significantly from 21.3% in the prior-year quarter. The comparable operating margin expanded 193 bps to 34.7%. The comparable currency-neutral operating margin expanded 325 bps to 36%.Our model predicted the second-quarter adjusted operating margin to contract 10 bps year over year to 32.7%, driven by a 30-bps increase in the SG&A expense rate. KO's Guidance for 2025 Management has reiterated its organic revenues guidance for 2025 and updated its EPS view. It anticipates organic revenue growth of 5-6% for 2025. Comparable net revenues are expected to include a 1-2% currency headwind based on current rates and hedge positions (compared with 2-3% currency headwind expected earlier). The guidance also includes a 1% negative impact of acquisitions, divestitures and structural changes. The company anticipates an underlying effective tax rate of 20.8% for currency-neutral EPS for 2025 is expected to increase 8% year over year, at the mid-point of the prior-mentioned 7-9%. The company anticipates comparable EPS growth of 3% for 2025 from the $2.88 reported in 2024. The revised guidance is at the high-end of the prior mentioned 2-3%. Comparable EPS growth is expected to include currency headwinds of 5% (compared with 5-6% headwind mentioned earlier). The EPS guidance also includes a 1% negative impact of acquisitions, divestitures and structural changes compared with a marginal impact mentioned envisions an adjusted free cash flow of $9.5 billion for 2025, including $11.7 billion in cash flow from operations. Capital expenditure is likely to be $2.2 third-quarter 2025, comparable revenues are expected to include a 1% currency headwind. Comparable EPS is estimated to include a 5-6% currency headwind. Other Stocks to Consider We have highlighted three other top-ranked stocks from the Consumer Staples sector, namely Vita Coco Company COCO, Zevia ZVIA and Diageo Coco produces and sells coconut water products under the Vita Coco brand name in the United States, Canada, Europe, the Middle East, Africa, and the Asia Pacific. The company currently has a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks Zacks Consensus Estimate for COCO's 2025 earnings and sales indicates growth of 12.5% and 6.5%, respectively, from the previous year's reported figures. Vita Coco has a trailing four-quarter average earnings surprise of 28.2%.Zevia is focused on addressing health challenges resulting from excess sugar consumption by offering a portfolio of zero sugar, zero calorie, naturally sweetened beverages. It presently has a Zacks Rank # Zacks Consensus Estimate for Zevia's 2025 sales and EPS indicates growth of 3.4% and 48.4%, respectively, from the prior-year reported levels. ZVIA delivered a trailing four-quarter earnings surprise of 33.6%, on is involved in producing, distilling, brewing, bottling, packaging and distributing spirits, wine and beer. DEO currently has a Zacks Rank # Zacks Consensus Estimate for Diageo's 2025 sales implies growth of 0.7% from the previous year's reported numbers. Meanwhile, DEO's earnings estimate indicates a year-over-year decline of 2.3%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report CocaCola Company (The) (KO) : Free Stock Analysis Report Vita Coco Company, Inc. (COCO) : Free Stock Analysis Report Diageo plc (DEO) : Free Stock Analysis Report Zevia PBC (ZVIA) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
16 hours ago
- Business
- Yahoo
Coca-Cola Beats on Earnings in Q2, But Falls Short on Revenues
The Coca-Cola Company KO has reported second-quarter 2025 results, with the bottom line surpassing the Zacks Consensus Estimate. Meanwhile, the top line missed the consensus mark. The company's revenues and earnings per share (EPS) improved year over year. The results have benefited from continued business momentum, aided by enhanced pricing across markets. This quarter's results once again highlight the strength of KO's resilient, all-weather reported a comparable EPS of 87 cents in the second quarter, up 4% from the year-ago period. Comparable EPS also beat the Zacks Consensus Estimate of 83 cents. Unfavorable currency translations hurt the comparable EPS by 5 percentage points. Comparable currency-neutral earnings per share rose 9% year over of $12.54 billion grew 1% year over year but missed the Zacks Consensus Estimate of $12.59 billion. Organic revenues rose 5% from the prior-year quarter, led by growth across all segments, except for Bottling Investments. Coca-Cola's reported revenues benefited from growth across most operating segments, except for Latin America and Bottling Investments. The improved price/mix in the quarter was offset by lower concentrate sales and adverse currency the second quarter of 2025, KO gained a global value share in the total non-alcoholic ready-to-drink beverages of Coca-Cola dipped nearly 1% in the pre-market trading session following the mixed second-quarter results. The Zacks Rank #2 (Buy) stock has risen 12.6% in the year-to-date period compared with the industry's growth of 6.7%. Image Source: Zacks Investment Research Detailed Picture of KO's Q2 Volume & Pricing In the reported quarter, concentrate sales were down 1% year over year, while the price/mix improved 6%. The price/mix benefited from pricing actions across the marketplace and a favorable mix. The impacts of high-inflation markets were lower in second-quarter 2025 compared with the same period last year. In the second quarter, concentrate sales were in line with unit case volume. Coca-Cola's total unit case volume fell 1% year over year in the second quarter, led by declines in Mexico, India and Thailand, which more than offset growth in Central Asia, Argentina and model predicted year-over-year organic revenue growth of 4.9% for the second quarter, with a 5.8% gain from the price/mix and a 0.9% decline in the concentrate sales volume. CocaCola Company (The) Price, Consensus and EPS Surprise CocaCola Company (The) price-consensus-eps-surprise-chart | CocaCola Company (The) Quote Coming to the cluster-category performance, the unit case volume dipped 1% year over year for the sparkling soft drinks category. The trademark Coca-Cola's unit volume dropped 1%, led by a decline in Latin America, offset by growth in EMEA. Coca-Cola Zero Sugar advanced 14%, aided by growth in all geographic operating segments. The sparkling flavors category declined 2% year over year, backed by a decline in the Asia Pacific, offset by growth in for juice, value-added dairy and plant-based beverages was down 4% in the second quarter, led by growth in the Asia Pacific, offset by an improvement in Latin volume for the water, sports, coffee and tea category was flat year over year in the second quarter. Coca-Cola witnessed flat volume growth in the water category, as improvement in EMEA and the Asia Pacific was fully offset by a decline in Latin America. Sports drinks fell 3%, driven by declines in Latin America, negated by gains in North America. The coffee business rose 1% due to growth in the Asia Pacific. The tea volume was flat, backed by growth in EMEA, offset by declines in North America. Peek Into KO's Segmental Details Reported revenues rose 3% year over year each for North America and the Asia Pacific, and improved 5% for EMEA. However, revenues declined 4% for Latin America and 8% for Bottling Investments. Organic revenues improved 13% year over year in Latin America, 3% in North America, 4% in EMEA and 5% in the Asia Pacific. Meanwhile, organic revenues were down 2% in Bottling Investments. Analyzing Coca-Cola's Q2 Margins In dollar terms, the operating income surged 63% year over year to $4.28 billion, including a 6-point impact of currency headwinds. Comparable operating income rose 8.5% year over year to $4.38 billion. Comparable currency-neutral operating income advanced 15% on strong organic revenue growth across most segments, effective cost management and the timing of marketing operating margin of 34.1% in the second quarter expanded significantly from 21.3% in the prior-year quarter. The comparable operating margin expanded 193 bps to 34.7%. The comparable currency-neutral operating margin expanded 325 bps to 36%.Our model predicted the second-quarter adjusted operating margin to contract 10 bps year over year to 32.7%, driven by a 30-bps increase in the SG&A expense rate. KO's Guidance for 2025 Management has reiterated its organic revenues guidance for 2025 and updated its EPS view. It anticipates organic revenue growth of 5-6% for 2025. Comparable net revenues are expected to include a 1-2% currency headwind based on current rates and hedge positions (compared with 2-3% currency headwind expected earlier). The guidance also includes a 1% negative impact of acquisitions, divestitures and structural changes. The company anticipates an underlying effective tax rate of 20.8% for currency-neutral EPS for 2025 is expected to increase 8% year over year, at the mid-point of the prior-mentioned 7-9%. The company anticipates comparable EPS growth of 3% for 2025 from the $2.88 reported in 2024. The revised guidance is at the high-end of the prior mentioned 2-3%. Comparable EPS growth is expected to include currency headwinds of 5% (compared with 5-6% headwind mentioned earlier). The EPS guidance also includes a 1% negative impact of acquisitions, divestitures and structural changes compared with a marginal impact mentioned envisions an adjusted free cash flow of $9.5 billion for 2025, including $11.7 billion in cash flow from operations. Capital expenditure is likely to be $2.2 third-quarter 2025, comparable revenues are expected to include a 1% currency headwind. Comparable EPS is estimated to include a 5-6% currency headwind. Other Stocks to Consider We have highlighted three other top-ranked stocks from the Consumer Staples sector, namely Vita Coco Company COCO, Zevia ZVIA and Diageo Coco produces and sells coconut water products under the Vita Coco brand name in the United States, Canada, Europe, the Middle East, Africa, and the Asia Pacific. The company currently has a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks Zacks Consensus Estimate for COCO's 2025 earnings and sales indicates growth of 12.5% and 6.5%, respectively, from the previous year's reported figures. Vita Coco has a trailing four-quarter average earnings surprise of 28.2%.Zevia is focused on addressing health challenges resulting from excess sugar consumption by offering a portfolio of zero sugar, zero calorie, naturally sweetened beverages. It presently has a Zacks Rank # Zacks Consensus Estimate for Zevia's 2025 sales and EPS indicates growth of 3.4% and 48.4%, respectively, from the prior-year reported levels. ZVIA delivered a trailing four-quarter earnings surprise of 33.6%, on is involved in producing, distilling, brewing, bottling, packaging and distributing spirits, wine and beer. DEO currently has a Zacks Rank # Zacks Consensus Estimate for Diageo's 2025 sales implies growth of 0.7% from the previous year's reported numbers. Meanwhile, DEO's earnings estimate indicates a year-over-year decline of 2.3%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report CocaCola Company (The) (KO) : Free Stock Analysis Report Vita Coco Company, Inc. (COCO) : Free Stock Analysis Report Diageo plc (DEO) : Free Stock Analysis Report Zevia PBC (ZVIA) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
19 hours ago
- Business
- Yahoo
Coca-Cola Tops Fiscal Second-Quarter Views; Updates Full-Year Earnings Growth Outlook
Coca-Cola (KO) on Tuesday reported fiscal second-quarter results above market estimates amid pricing Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
21 hours ago
- Business
- Yahoo
Coca-Cola (NYSE:KO) Posts Q2 Sales In Line With Estimates
Beverage company Coca-Cola (NYSE:KO) met Wall Street's revenue expectations in Q2 CY2025, with sales up 1.4% year on year to $12.54 billion. Its non-GAAP profit of $0.87 per share was 3.9% above analysts' consensus estimates. Is now the time to buy Coca-Cola? Find out in our full research report. Coca-Cola (KO) Q2 CY2025 Highlights: Revenue: $12.54 billion vs analyst estimates of $12.55 billion (1.4% year-on-year growth, in line) Adjusted EPS: $0.87 vs analyst estimates of $0.84 (3.9% beat) Roughly maintained full-year guidance for organic growth and adjusted EPS Operating Margin: 34.1%, up from 21.3% in the same quarter last year Free Cash Flow Margin: 26.9%, up from 25.6% in the same quarter last year Organic Revenue rose 5% year on year (15% in the same quarter last year) Sales Volumes fell 1% year on year (2% in the same quarter last year) Market Capitalization: $301.6 billion Company Overview A pioneer and behemoth in carbonated soft drinks, Coca-Cola (NYSE:KO) is a storied beverage company best known for its flagship soda. Revenue Growth Examining a company's long-term performance can provide clues about its quality. Any business can put up a good quarter or two, but many enduring ones grow for years. With $47.15 billion in revenue over the past 12 months, Coca-Cola is one of the most widely recognized consumer staples companies. Its influence over consumers gives it negotiating leverage with distributors, enabling it to pick and choose where it sells its products (a luxury many don't have). However, its scale is a double-edged sword because there are only a finite number of major retail partners, placing a ceiling on its growth. For Coca-Cola to boost its sales, it likely needs to adjust its prices, launch new offerings, or lean into foreign markets. As you can see below, Coca-Cola grew its sales at a tepid 4.5% compounded annual growth rate over the last three years, but to its credit, consumers bought more of its products. This quarter, Coca-Cola grew its revenue by 1.4% year on year, and its $12.54 billion of revenue was in line with Wall Street's estimates. Looking ahead, sell-side analysts expect revenue to grow 5.3% over the next 12 months, similar to its three-year rate. This projection is above the sector average and indicates its newer products will help support its historical top-line performance. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. Volume Growth Revenue growth can be broken down into changes in price and volume (the number of units sold). While both are important, volume is the lifeblood of a successful staples business as there's a ceiling to what consumers will pay for everyday goods; they can always trade down to non-branded products if the branded versions are too expensive. To analyze whether Coca-Cola generated its growth from changes in price or volume, we can compare its volume growth to its organic revenue growth, which excludes non-fundamental impacts on company financials like mergers and currency fluctuations. Over the last two years, Coca-Cola's average quarterly volume growth was a healthy 1.1%. Even with this good performance, we can see that most of the company's gains have come from price increases by looking at its 10.4% average organic revenue growth. The ability to sell more products while raising prices indicates that Coca-Cola enjoys some degree of inelastic demand. In Coca-Cola's Q2 2025, sales volumes dropped 1% year on year. This result was a reversal from its historical levels. A one quarter hiccup shouldn't deter you from investing in a business, and we'll be monitoring the company to see how things progress. Key Takeaways from Coca-Cola's Q2 Results Revenue was in line while EPS beat partly due to better-than-expected gross margin. The company roughly maintained full-year guidance for organic growth and adjusted EPS, which is comforting. Overall, this was a quarter with few surprises. The stock remained flat at $69.93 immediately after reporting. Coca-Cola underperformed this quarter, but does that create an opportunity to invest right now? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it's free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Wall Street Journal
a day ago
- Business
- Wall Street Journal
Stocks to Watch Tuesday: Coca-Cola, GM, AstraZeneca, NXP
🔎 Earnings are due from companies including Coca-Cola (KO), Danaher (DHR) and General Motors (GM) early Tuesday. ↘️ NXP Semiconductors (NXPI): The Dutch semiconductor company guided for sales to drop this quarter, knocking its shares in premarket trading. Other European chip stocks, including ASML (ASML) and STMicroelectronics (STM), also dropped. ↗️ SoftBank (JP: 9984): The Japanese conglomerate and OpenAI have sharply scaled back their near-term plans for the Stargate partnership. The project now aims to build a small data center by the end of this year, The Wall Street Journal reported.
