FX.co ★ Coca-Cola Backs FY24 Comparable EPS View, Lifts Organic Revenue Growth Forecast - Update

Beverage titan Coca-Cola Co. (KO) reported a surge in earnings for the first quarter. Despite this, the company retained its existing forecast for a growth in comparable earnings for the fiscal year of 2024. However, Coca-Cola raised its prospects for organic revenue growth.

Before-market trading on the New York Stock Exchange saw Coca-Cola shares falling approximately 0.7 percent, bringing the trading price to $61.62.

In its fiscal forecast for 2024, Coca-Cola foresees a growth in comparable earnings per share of 4 to 5 percent, building on last year's $2.69.

Expectations have now shifted for Coca-Cola to achieve a growth in comparable, currency neutral earnings per share of 11 to 13 percent. This is notably higher than the earlier prediction of a growth range of 8 to 10 percent.

In addition to this, the company's projection for organic revenue growth now stands at 8 to 9 percent. This figure encompasses optimal operational performance within Coca-Cola's longstanding business model and also includes the pricing effects in various markets currently dealing with severe inflation.

Coca-Cola's initial prediction for organic revenue growth was 6 to 7 percent, accounting for a currency headwind of 2 to 3 percent and a 4 to 5 percent headwind stemming from acquisitions, divestitures and structural modifications.

Within the first quarter, Coca-Cola witnessed an increase in earnings, surpassing predictions. The company's earnings amounted to $3.18 billion or $0.74 per share, a rise from the previous year's first quarter totals of $3.11 billion or $0.72 per share.

The adjusted earnings for the period were reported as $3.12 billion, or $0.72 per share. In contrast, analysts, on average, had anticipated earnings of $0.65 per share, as recorded by Thomson Reuters. Such estimates frequently exclude outlying factors.

Coca-Cola's revenue for the quarter experienced a 2.9 percent growth, reaching $11.30 billion, up from previous year's $10.98 billion.