Coca-Cola (KO) saw a significant uptick in stock value recently following positive remarks from the company’s CFO, John Murphy. Speaking during the company’s fourth-quarter earnings call, Murphy addressed concerns about rising aluminum prices, stating that while the new 25% tax on aluminum imports imposed by the Trump administration could have a potential impact, it would only be a “relatively small amount” in Coca-Cola’s overall input mix. This assertion reassured investors that the soda giant could effectively manage the potential cost hikes within its extensive, multi-billion-dollar supply chain.
Murphy emphasized that the company doesn’t anticipate any significant price increases due to aluminum prices in the immediate future. However, he remained cautious, noting that while the situation was manageable now, Coca-Cola would continue to monitor the impact over the course of the year and adapt if necessary. His comments were received favorably by investors, helping to push the stock price higher.
In Coca-Cola’s fourth-quarter earnings report, the company surpassed analysts’ expectations across the board. The company’s revenue for the quarter hit $11.5 billion, well above the forecasted $10.67 billion. Earnings per share also exceeded predictions, coming in at $0.55 compared to the expected $0.52. This performance was largely driven by a 9% increase in price/mix, reflecting the company’s ability to adjust prices in response to inflationary pressures, and a 2% rise in unit case volume.
Looking ahead to 2025, Coca-Cola is projecting organic revenue growth of 5% to 6% and adjusted earnings growth of 2% to 3%. These projections suggest that the company remains confident in its ability to weather external economic pressures, including those related to input costs such as aluminum, and continue delivering steady growth for shareholders.
The positive earnings results, coupled with Murphy’s reassuring comments about aluminum prices, provided a strong boost to Coca-Cola’s stock. The company’s ability to adapt and manage costs, despite potential headwinds, underscores its resilience in a competitive and dynamic market. With a solid track record and a positive outlook for the year ahead, Coca-Cola’s stock remains an attractive option for investors.
