Coca-Cola Earnings Preview: What to Expect from KO

Coca-Cola is set to release Q2 earnings results on Tuesday. Analysts expect revenue to grow 1.5% YoY to $12.55 billion and adjusted earnings of $0.84 per share. The company has a history of exceeding Wall Street's expectations, beating revenue estimates every time over the past two years. Coca-Cola's peers in the consumer staples segment have reported mixed results, with some missing analysts' expectations. The company's stock price has been unchanged over the past month and has an average analyst price target of $77.71.

Coca-Cola (KO) is set to release its second-quarter 2025 earnings results on Tuesday, July 22, ahead of the opening bell. Analysts expect revenue to grow year-over-year (YoY) by 1.9% to $12.6 billion, with adjusted earnings per share (EPS) projected at 83 cents, representing a 1.2% decline from the prior year [1].

The Atlanta, GA-based company has a history of exceeding Wall Street's expectations, with a trailing four-quarter earnings surprise of 4.9% on average [1]. However, the consensus mark for earnings has remained unchanged over the past 30 days, indicating a cautious outlook among analysts [1].

Key trends in focus ahead of the earnings release include Coca-Cola's diverse brand portfolio, strategic investments, and consistent revenue growth across its segments. The company's price/mix is projected to have improved, driven by price hikes and a favorable product mix in developed markets [1]. Additionally, digital investments and e-commerce growth are expected to boost second-quarter revenues [1].

However, the company faces challenges such as low consumer confidence in China, geopolitical and economic instability in Eurasia and the Middle East, and high inflation in Argentina, which may weigh on its top-line performance [1]. Volume pressure in key markets like North America and Mexico also raises concerns about demand resilience [1].

Wall Street analysts expect Coca-Cola's stock price to remain relatively stable, with an average analyst price target of $77.71 [2]. Despite the mixed expectations, Coca-Cola's strong market positioning and brand power position it well for sustained long-term growth. Prospective investors should assess the current valuation before initiating a position, while existing shareholders may find it wise to stay invested.

References:
[1] https://finance.yahoo.com/news/coca-colas-q2-earnings-deck-124000083.html
[2] https://www.nasdaq.com/articles/unveiling-coca-cola-ko-q2-outlook-wall-street-estimates-key-metrics