Coca Cola Q4 Results: Strong performance ahead of estimates

Coca Cola Q4

Revenue - The company reported a revenue of $9.46 billion against analysts' expectations of $8.96 billion. This compares to year-ago revenues of $8.61 billion. The company has topped consensus revenue estimates four times over the last four quarters.

Earning Per Share - The Earning Per Share came at 45 cents against an expectation of 41 cents. During the same period last year, it reported EPS of $0.47 per share.

Updates from different segments - Coke’s sparkling soft drinks segment, which includes its namesake soda, saw volume grow 8% in the quarter. The Zero Sugar drink saw double-digit growth. The volume of nutrition, juice, dairy, and plant-based beverages climbed 11%. Hydration, sports drinks, coffee, and tea division saw 12% volume growth in the quarter. Coffee saw the second-highest surge, growing 17% as Coke reopened Costa cafes in the United Kingdom.

2022 Outlook -  Coke expects comparable earnings per share growth of 5% to 6%, while analysts were forecasting 6.1% growth. It expects higher commodity costs to hit earnings by mid-single digits. The company is also predicting organic revenue growth of 7% to 8% for the full year.

Target Price - The 21 analysts offering 12-month price forecasts for Coca-Cola Co have a median target of $64, with a high estimate of $71 and a low estimate of $58.

Coca Cola Q4 Results Review

Coca-Cola earnings and revenue for the Q4 topped analysts' expectations but the forecast for 2022 is lower than analysts' expectations. The company has warned investors about rising costs for packaging and transportation. The Coca-Cola share price closed at 3.73% lower at $553.59 per share.