NYSE$KO

Coca-Cola · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Coca-Cola's Q3 2024 results were impacted by currency headwinds and a charge related to the fairlife acquisition, but demonstrated resilience with organic revenue growth.

Coca-Cola reported a 1% decline in net revenues, but organic revenues grew by 9%. EPS declined by 7% to $0.66, while comparable EPS grew by 5% to $0.77. The company gained value share in total nonalcoholic ready-to-drink beverages.

  • Net revenues declined 1%, while organic revenues (non-GAAP) grew 9%.
  • EPS declined 7% to $0.66, but comparable EPS (non-GAAP) grew 5% to $0.77.
  • Operating margin was 21.2% versus 27.4% in the prior year; comparable operating margin (non-GAAP) was 30.7% versus 29.7% in the prior year.
  • The company gained value share in total nonalcoholic ready-to-drink (NARTD) beverages.

Headline financials

Total Revenue

$11.9B

Previous: $12B-0.8%
EPS

$0.66

Previous: $0.74-10.8%
Operating margin

21.2%

No prior period
Comparable operating margin

30.7%

No prior period
Capital Expenditures

-$1.26B

Previous: -$1B-26.0%
Free Cash Flow

$1.59B

Previous: $2.09B-23.9%
Net Income

$2.85B

Previous: $3.09B-7.7%
Operating Income

$2.51B

Previous: $3.27B-23.2%
Gross Profit

$7.19B

Previous: $7.3B-1.5%
Cash & Equivalents

$13.9B

Previous: $11.9B+17.3%
Total Assets

$106B

Previous: $97.6B+8.9%
Stock-Based Comp

$67M

Previous: $57M+17.5%

Revenue & EPS history

Coca-Cola · Revenue · Quarterly

$11.9B

Q3 2024-0.8%vs Q3 2023
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Forward guidance

The company expects to deliver organic revenue (non-GAAP) growth of approximately 10%. Comparable EPS (non-GAAP) growth is expected to include an approximate 9% currency headwind. The company expects to generate free cash flow excluding the IRS tax litigation deposit (non-GAAP) of approximately $9.2 billion.

Tailwinds

  • The company expects to deliver organic revenue (non-GAAP) growth of approximately 10%, which consists of operating performance at the high end of the company’s long-term growth model and the anticipated pricing impact of a number of markets experiencing intense inflation.
  • The company expects to generate free cash flow excluding the IRS tax litigation deposit (non-GAAP) of approximately $9.2 billion.
  • Comparable net revenues (non-GAAP) are expected to include an approximate 4% currency headwind based on the current rates and including the impact of hedged positions, in addition to a 4% to 5% headwind from acquisitions, divestitures and structural changes.
  • The company expects elevated interest expense resulting from the debt issued to pay the IRS tax litigation deposit and the upcoming fairlife contingent consideration payment.
  • The company will provide full-year 2025 guidance when it reports fourth quarter earnings.

Headwinds

  • For comparable net revenues (non-GAAP), the company expects an approximate 5% currency headwind based on the current rates and including the impact of hedged positions.
  • Comparable EPS (non-GAAP) percentage growth is expected to include an approximate 9% currency headwind based on the current rates and including the impact of hedged positions. The majority of currency headwinds are due to devaluation resulting from intense inflation.
  • For comparable net revenues (non-GAAP), the company expects a 4% to 5% headwind from acquisitions, divestitures and structural changes.
  • Comparable EPS (non-GAAP) percentage growth is expected to include an approximate 10% currency headwind based on the current rates and including the impact of hedged positions, in addition to a 3% to 4% headwind from acquisitions, divestitures and structural changes.
  • The company expects elevated interest expense resulting from the debt issued to pay the IRS tax litigation deposit and the upcoming fairlife contingent consideration payment.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2024

Historical avgQ3 2024

+0.3%

Avg return

Earnings day

+0.7%

Avg return

5 days after

+0.5%

Avg return

30 days after

59%

43 / 73 earnings

Positive

+6.1%

Q1 2013

Best reaction

-9.1%

Q4 2018

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+6.0%+4.2%+6.6%
Q4 2025-1.5%+0.9%-0.5%
Q3 2025+3.7%+1.9%+4.0%
Q2 2025+0.6%-0.6%-3.6%
Q1 2025+0.8%-0.2%-0.4%
Q4 2024+4.7%+6.7%+7.9%
Q3 2024-3.1%-4.0%-8.0%
Q2 2024+1.6%+3.5%+7.0%
Q1 2024-0.2%+0.2%-0.1%
Q4 2023-0.7%-0.5%+1.3%
Q3 2023+3.8%+2.1%+8.0%
Q2 2023+0.3%-0.5%-3.0%
Q1 2023-0.3%+0.2%-4.9%
Q4 2022-1.7%-0.8%-0.5%
Q3 2022+3.2%+5.5%+8.8%
Q2 2022+1.3%+3.2%+4.0%
Q1 2022-0.3%-1.0%-1.8%
Q4 2021-1.2%-0.2%-5.1%
Q3 2021+2.9%+3.1%-1.4%
Q2 2021+1.1%+2.2%+1.5%
Q1 2021+0.9%+1.5%+0.9%
Q4 2020+1.2%+2.0%+1.3%
Q3 2020+1.1%-0.2%+5.4%
Q2 2020+5.1%+5.1%+2.7%
Q1 2020-1.8%-2.4%-2.9%
Q4 2019+2.4%+3.2%-6.2%
Q3 2019+0.8%+1.6%-2.1%
Q2 2019+5.0%+5.8%+6.4%
Q1 2019+1.2%+1.8%+5.2%
Q4 2018-9.1%-10.0%-9.0%
Q3 2018+3.1%+3.3%+5.4%
Q2 2018+2.2%+2.1%+0.8%
Q1 2018-3.5%-1.5%-3.8%
Q4 2017-1.8%-3.2%-2.9%
Q3 2017+0.1%-0.7%-0.6%
Q2 2017+1.9%+1.3%+0.7%
Q1 2017-0.1%-0.3%+4.9%
Q4 2016-3.4%-3.5%+0.6%
Q3 2016-1.0%-0.3%-2.4%
Q2 2016-2.7%-3.2%-3.5%
Q1 2016-6.3%
Q4 2015-0.2%
Q3 2015+2.2%
Q2 2015-0.8%
Q1 2015+0.4%
Q4 2014+2.8%
Q3 2014-6.2%
Q2 2014-3.7%
Q1 2014+4.8%
Q4 2013-4.7%
Q3 2013+0.2%
Q2 2013-0.4%
Q1 2013+6.1%
Q4 2012-3.6%
Q3 2012-1.0%
Q2 2012+1.3%
Q1 2012+0.8%
Q4 2011-0.4%
Q3 2011+2.1%
Q2 2011-1.4%
Q1 2011+2.0%
Q4 2010+0.9%
Q3 2010+0.8%
Q2 2010+2.3%
Q1 2009+0.2%
Q1 2010-0.8%
Q4 2007+0.3%
Q4 2009+0.3%
Q3 2008-0.3%
Q3 2009-0.3%
Q4 2008+1.1%
Q2 2008+1.1%
Q2 2009+1.1%

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