Coca-Cola (KO) Tops Q3 EPS by 4c, Beats on Revenue; Offers Guidance

Coca-Cola (NYSE: KO) reported Q3 EPS of $0.82, $0.04 better than the analyst estimate of $0.78. Revenue for the quarter came in at $12.5 billion versus the consensus estimate of $12.41 billion.

Based on the current macroenvironment, the company is providing the following full year guidance.

The company expects to deliver organic revenue (non-GAAP) growth of 5% to 6%. — No Update

For comparable net revenues (non-GAAP), the company expects a 1% to 2% currency headwind based on the current rates and including the impact of hedged positions, in addition to an approximate 1% headwind from acquisitions, divestitures and structural changes. — No Update

The company’s operations are primarily local, however, they are subject to global trade dynamics that may impact certain components of the company’s cost structure across its markets. At this time, the company expects the impact to be manageable. — No Update

The company’s underlying effective tax rate (non-GAAP) is estimated to be 20.7% versus 18.6% in 2024. This includes the impact of several countries enacting the global minimum tax regulations and does not include the impact of ongoing tax litigation with the U.S. Internal Revenue Service, if the company were not to prevail. — Updated from 20.8%

The company expects to deliver comparable currency neutral EPS (non-GAAP) growth of approximately 8%. — No Update

The company expects comparable EPS (non-GAAP) growth of approximately 3% versus $2.88 in 2024. — No Update

Comparable EPS (non-GAAP) percentage growth is expected to include an approximate 5% currency headwind based on the current rates and including the impact of hedged positions, in addition to an approximate 1% headwind from acquisitions, divestitures and structural changes. — No Update

The company expects to generate free cash flow excluding the fairlife contingent consideration payment (non-GAAP) of at least $9.8 billion. This consists of cash flow from operations excluding the fairlife contingent consideration payment (non-GAAP) of approximately $12.0 billion, less capital expenditures of approximately $2.2 billion. — Updated from $9.5 billion

For earnings history and earnings-related data on Coca-Cola (KO) click here.

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