Coca-Cola shares decline by 0.75% despite better earnings report 📈

Coca-Cola (KO.US) shares dips over 1% despite the company beats sales estimates and earnings align with expectations. Higher prices helped the company offset lower sales volume in North America.

Earnings Per Share: $0.49 adjusted vs. $0.49 forecast

Revenue: $10.85 billion vs $10.68 billion forecast

• Coca-Cola reported a net income of $1.97 billion in the fourth quarter of 2023 compared to $2.03 billion in Q4 2022.
• Net sales increased by 7% year-over-year to $10.85 billion. Organic revenue grew by 12% year-over-year in Q4 2023.
• The company recorded a 2% increase in unit volume in the last quarter. Sales volume in North America fell by 1% due to decreased demand for water, sports drinks, coffee, and tea.
• PepsiCo recorded a significantly larger drop in beverage volume in North America by 6% in the fourth quarter.
• Management indicated that higher borrowing costs and lower personal savings are reducing consumer budgets, leading them to seek cheaper alternatives or buy smaller package sizes.

For 2024, the company forecasts organic revenue growth of 6% to 7% and a comparable earning per share increase of 4% to 5%. In Q1 2024, Coke expects a 4% decline in comparable revenues due to unfavorable exchange rates. The company also anticipates that currency exchange will slow earnings per share growth.

Coca-Cola (KO.US) Stock Chart