Coca-Cola Beats Q2 Earnings and Revenue Estimates, Raises Full-Year Outlook

Coca-Cola (NYSE:KO) shares rose more than 1% in pre-market today after the company reported its second-quarter 2024 earnings, surpassing analyst expectations with an adjusted EPS of $0.84, which was higher than the Street estimate of $0.80. The company also beat revenue forecasts, posting $12.4 billion compared to the anticipated $11.77 billion.

Net revenues for the beverage giant increased by 3%, while organic revenues jumped 15%, driven by a 9% rise in price/mix and a 6% increase in concentrate sales.

Operating income grew by 10%, and the operating margin improved to 21.3% from 20.1% in the previous year. The comparable operating margin (adjusted) also increased to 32.8%, up from 31.6% last year. Despite these gains, reported EPS fell by 5% to $0.56, although the comparable EPS (adjusted) rose by 7%.

James Quincey, Chairman and CEO of Coca-Cola, expressed satisfaction with the results and confidence in meeting the raised 2024 guidance and long-term goals.

For the full year 2024, Coca-Cola updated its outlook, now expecting an organic revenue growth of 9% to 10%. The company anticipates a 5% to 6% currency headwind on comparable net revenues and an 8% to 9% currency headwind on comparable EPS growth.

Despite these challenges, Coca-Cola remains optimistic about achieving a comparable currency-neutral EPS growth of 13% to 15% and a comparable EPS growth of 5% to 6%, compared to $2.69 in 2023.