Coca-Cola (NYSE:KO) reported stronger-than-anticipated earnings for the second quarter and reiterated expectations to achieve adjusted per-share earnings growth at the upper end of its previously outlined range, despite facing challenges from tariff-related pressures.
The company also announced plans to introduce a new product made with cane sugar in the U.S. market this fall. This move follows a social media post by President Donald Trump last week, in which he revealed that he had discussed this change with company executives, who agreed to proceed.
Joining PepsiCo (NASDAQ:PEP), Coca-Cola expressed a more optimistic outlook for the remainder of the year, even as both companies navigate a consumer environment clouded by economic uncertainty. This uncertain climate has the potential to dampen consumer confidence, prompting some shoppers to cut back and look for more affordable alternatives.
For the quarter, Coca-Cola reported a 4% rise in comparable adjusted earnings per share, reaching $0.87, exceeding Bloomberg’s consensus estimate of $0.83.
The company’s net revenue increased by 1% to $12.5 billion, helped in part by pricing adjustments. Coca-Cola also noted that the effects of “intense inflation” in certain markets were milder during this quarter compared to the previous year. Organic sales advanced 5%, surpassing Wall Street’s forecast of a 4.5% gain.
However, unit case volumes declined by 1%, as growth in regions like Central Asia, Argentina, and China was offset by downturns in Mexico, India, and Thailand.
Looking ahead to fiscal 2025, Coca-Cola projects comparable earnings per share will grow approximately 3% compared to $2.88 last year, slightly above its earlier guidance range of 2% to 3%.
Shares of Coca-Cola dipped modestly in premarket trading Tuesday, though the stock has gained more than 13% year-to-date.
This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.