The Coca-Cola Company (KO, Financial) recently announced its second-quarter financial performance, revealing a revenue of $12.5 billion, slightly under the market expectation of $12.55 billion. The global unit case volume experienced a 1% decline during this period. Despite facing changes in the external environment, the company's system demonstrated resilience and adaptability, helping it maintain its strategic path through the first half of the year. CEO James Quincey expressed confidence in the company's ability to focus on its priorities, stating that they are on track to meet their revised 2025 goals and other long-term targets.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 25 analysts, the average target price for Coca-Cola Co (KO, Financial) is $77.91 with a high estimate of $86.00 and a low estimate of $59.60. The average target implies an upside of 11.19% from the current price of $70.07. More detailed estimate data can be found on the Coca-Cola Co (KO) Forecast page.
Based on the consensus recommendation from 29 brokerage firms, Coca-Cola Co's (KO, Financial) average brokerage recommendation is currently 1.9, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Coca-Cola Co (KO, Financial) in one year is $70.18, suggesting a upside of 0.16% from the current price of $70.07. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Coca-Cola Co (KO) Summary page.
KO Key Business Developments
Release Date: April 29, 2025
- Organic Revenue Growth: 6% growth, reflecting performance at the high end of the long-term growth algorithm.
- Volume Growth: 2% growth in unit case volume.
- Price Mix Growth: 5% growth driven by pricing actions across markets.
- Comparable Gross Margin: Increased approximately 30 basis points.
- Comparable Operating Margin: Increased approximately 130 basis points.
- Comparable EPS: $0.73, a 1% increase year-over-year despite currency headwinds.
- Free Cash Flow: Approximately $560 million, excluding the fairlife contingent consideration payment.
- Net Debt Leverage: 2.1 times EBITDA, at the low end of the targeted range.
- 2025 Guidance: Expected organic revenue growth of 5% to 6% and comparable currency neutral EPS growth of 7% to 9%.
- Currency Headwinds: Anticipated 2 to 3 point impact on net revenues and 5 to 6 point impact on EPS for full year 2025.
- Effective Tax Rate: Expected to be 20.8% for 2025.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Coca-Cola Co (KO, Financial) achieved 2% volume growth and organic revenue growth at the high end of its long-term growth algorithm.
- The company expanded comparable gross and operating margins, demonstrating strong financial performance.
- Coca-Cola Co (KO) won value share across all global beverage categories, including at home and away from home.
- The company saw continued volume growth for Coca-Cola Zero Sugar and strong performance from brands like fairlife and Topo Chico Sabores.
- In Asia-Pacific, Coca-Cola Co (KO) delivered volume, organic revenue, and comparable currency neutral operating income growth, with strong performance in India and China.
Negative Points
- Volume performance in North America was impacted by weakening consumer sentiment, particularly among Hispanic consumers.
- In Mexico, Coca-Cola Co (KO) faced weaker momentum due to geopolitical tensions and diminished consumer sentiment.
- The company experienced mixed performance in Europe, with volume declines in both Western and Eastern markets.
- Coca-Cola Co (KO) faced challenges in ASEAN, with weaker performance in Thailand and Indonesia offsetting strong performance in the Philippines.
- Currency headwinds posed a challenge, with an approximate 5% impact on comparable earnings per share for the full year 2025.
