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Tap Coke-Heavy ETFs on Upbeat Earnings and Guidance

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The Coca-Cola Company (KO - Free Report) has reported first-quarter 2025 results, wherein the top and bottom lines surpassed the Zacks Consensus Estimate. The company’s revenues declined year over year but earnings per share (EPS) improved. Shares of Coca-Cola reacted positively post earnings release.

Revenues of $11.13 billion dipped 2% year over year but slightly surpassed the Zacks Consensus Estimate of $11.12 billion. Organic revenues rose 6% from the prior-year quarter, led by growth across all segments.

The results have benefited from continued business momentum, aided by enhanced pricing across markets. This quarter’s results once again highlight the strength of KO’s resilient, all-weather strategy.

Coca-Cola reported a comparable EPS of 73 cents in the first quarter, up 1% from the year-ago period. Comparable EPS also beat the Zacks Consensus Estimate of 71 cents. Unfavorable currency translations hurt the comparable EPS by 5 percentage points. Comparable currency-neutral earnings per share rose 6% year over year. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

KO’s Guidance for 2025: Decently Upbeat

Unlike peer PepsiCo PEP, Coke did not trim its full-year forecast due to tariff threat.For 2025, Coke is still anticipating that its organic revenue will grow 5% to 6% and comparable earnings per share will increase 2% to 3%.

Coke said its operations are “primarily local,” although costs, like aluminum and orange juice, could increase due to the ongoing trade wars triggered by President Donald Trump’s tariffs. 

Heading into the second quarter, Coke faces tough year-over-year comparisons, as last year marked its strongest period. The company also anticipates some short-term “choppiness” due to trade conflicts, especially in the United States, even if those issues don’t directly impact its business.

ETFs in Focus

Against this backdrop, investors can keep a watch on Coca-Cola-heavy exchange-traded funds (ETFs) like iShares U.S. Consumer Staples ETF (IYK - Free Report) , Vanguard Consumer Staples ETF (VDC - Free Report) , Fidelity Covington Trust MSCI Consumer Staples Index ETF (FSTA - Free Report) and First Trust Nasdaq Food & Beverage ETF (FTXG - Free Report) . Coca-Cola shares have 8% to 11% exposure to those funds.

 

 

 

 

 


 

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