Coca-Cola (KO) stock is higher early Tuesday after the soda pop maker beat top- and bottom-line expectations for its fourth quarter and provided a strong outlook for 2025.
In the three months ending December 31, Coca-Cola's net revenue increased 6% year over year to $11.5 billion. Organic revenue, which excludes the impact of currency changes, increased 14%. Meanwhile, the company said earnings per share (EPS) rose 12% from the year-ago period to 55 cents.
"Our all-weather strategy is working, and we continue to demonstrate our ability to lead through dynamic external environments," said Coca-Cola CEO James Quincey in a statement.
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Quincey added that Coca-Cola's global scale and local-market expertise as well as "the unwavering dedication of our people and our system" put it in position "to capture the vast opportunities ahead."
The results topped analysts' expectations. Wall Street was anticipating revenue of $10.7 billion and earnings of 52 cents per share, according to CNBC.
In the first quarter, Coca-Cola said it expects to achieve net revenue growth in the range of 3% to 4% and EPS growth of 4% to 6%. For 2025, the company anticipates net revenue growth of 3% to 4%, organic revenue growth of 5% to 6% and earnings per share growth of 2% to 3%.
Is Coca-Cola stock a buy, sell or hold?
Coca-Cola has generated a double-digit total return of nearly 12% over the last 12 months, trailing the S&P 500's gain of more than 22%. But Wall Street is bullish on the Dow Jones stock.
According to S&P Global Market Intelligence, the average analyst target price for KO stock is $71.71, representing implied upside of more than 6% to current levels. And the consensus recommendation is a Buy.
Financial service firm Jefferies is one of the more bullish outfits on the Warren Buffett stock with a Buy rating and $75 price target.
"The market has aggressively sold off consumer staples since the election," Jefferies analyst Kaumil Gajrawala wrote in a January 30 note, adding that Coca-Cola shares were off about 15% from its highs and were trading at just 20 times earnings estimates for 2026.
"As we look for the most underpriced high-quality asset in this sell-off," Gajrawala wrote, "we think it is this business."
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