Coca-Cola's Q4 revenue misses estimates, operating income declines on impairment charges

Overview

• Beverage giant's Q4 revenue missed analyst expectations, organic revenue grew 5%

• Adjusted EPS for Q4 beat analyst expectations

• Operating income declined due to BODYARMOR trademark impairment and currency headwinds

Outlook

• Coca-Cola expects 2026 organic revenue growth of 4% to 5%

• Company anticipates 2026 comparable EPS growth of 7% to 8%

• Coca-Cola forecasts 2026 free cash flow at approximately $12.2 bln

Result Drivers

• CONCENTRATE SALES - Q4 organic revenue growth driven by 4% increase in concentrate sales and 1% growth in price/mix

• IMPAIRMENT CHARGE - Operating income declined 32% due to $960 mln non-cash impairment charge related to BODYARMOR trademark and currency headwinds

• MARKETING INITIATIVES - Co used integrated marketing campaigns to drive volume growth across multiple global beverage brands

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 23 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the non-alcoholic beverages peer group is "hold."

• Wall Street's median 12-month price target for Coca-Cola Co is $80.00, about 2.6% above its February 9 closing price of $77.97

• The stock recently traded at 24 times the next 12-month earnings vs. a P/E of 22 three months ago

Press Release: ID:nBw45LN0Ga

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.