Recap: Coca-Cola Q4 Earnings

Shares of Coca-Cola KO rose 0.7% in pre-market trading after the company reported Q4 results.

Quarterly Results

Earnings per share increased 6.82% year over year to $0.47, which beat the estimate of $0.42.

Revenue of $8,611,000,000 decreased by 5.04% from the same period last year, which missed the estimate of $8,630,000,000.

Guidance

The company expects to deliver organic revenue (non-GAAP) percentage growth of high single digits. For comparable net revenues (non-GAAP), the company expects a 2% to 3% currency tailwind based on the current rates and including the impact of hedged positions. The company's underlying effective tax rate (non-GAAP) is estimated to be 19.5%. Given the above considerations, the company expects to deliver comparable EPS (non-GAAP) percentage growth of high single digits to low double digits versus $1.95 in 2020. This includes a 3% to 4% currency tailwind based on the current rates and including the impact of hedged positions. The company expects to deliver free cash flow (non-GAAP) of at least $8.5 billion through cash flow from operations of at least $10.0 billion and capital expenditures of approximately $1.5 billion. This does not include any potential payments related to the ongoing tax litigation with the IRS.

See also: How to Buy Coca-Cola Stock

Coca-Cola hasn't issued any revenue guidance for the time being.

Conference Call Details

Date: Feb 10, 2021

Time: 08:30 AM

ET Webcast URL: https://event.on24.com/eventRegistration/EventLobbyServlet?target=reg20.jsp&referrer=https%3A%2F%2Finvestors.coca-colacompany.com%2F&eventid=2932327&sessionid=1&key=CC2D2CF4EC3F8C414D1B59B9FB586B84&regTag=&V2=false&sourcepage=register

Price Action

Company's 52-week high was at $60.13

Company's 52-week low was at $36.27

Price action over last quarter: down 0.93%

Company Description

Coca-Cola is the largest nonalcoholic beverage entity in the world, owning and marketing some of the leading carbonated beverage brands, such as Coke, Fanta, and Sprite, as well as nonsparkling brands, such as Minute Maid, Georgia Coffee, and Glaceau. Operationally, the firm focuses its manufacturing efforts early in the supply chain, making the concentrate (or beverage bases) for its drinks that are then processed and distributed by its network of more than 100 bottlers. Concentrate operations represented 85% of the company's unit case volume in 2018. Coca-Cola recently expanded its presence in the hot-beverage market through its acquisition of Costa, a leading coffee company in the United Kingdom. The firm generates most of its revenue internationally.