Preview of US Stock Earnings Reports: Coca-Cola's Fourth-Quarter Report is Coming. What's the Charm of Coca-Cola That Even Trump Loves?

On February 11th, Coca-Cola will disclose its fourth-quarter financial report for 2024 before the opening of the US stock market.

 

Trump, the President of the United States, can be said to be at the pinnacle of the world.

 

The first thing he did after being elected president was to bring back the "Coca-Cola button" to the White House.

 

How on earth has Coca-Cola managed to make even the president unable to resist it? As Coca-Cola's earnings report is being released, let's take a look together.

 

On October 23, Coca-Cola released its third-quarter 2024 earnings report.

 

Driven by strong performance, Coca-Cola's stock price rose 3.2% on the first trading day after the release of the earnings report, closing at $65.89.

 

 

James Quincey said, "In the ever-changing external environment, our business continues to demonstrate strong resilience. The performance so far this year, as well as the ability of our system to continue to focus on long-term growth opportunities while dealing with recent challenges, have greatly inspired us."

 

Indeed, grasping the key word "long-term", Coca-Cola has long become a synonym for value. The well-known stock god Buffett is very fond of it.

 

The dividend data available online dates back to 1970. Since then, Coca-Cola has shown its characteristics as a "cash cow", and it has paid dividends without fail in every quarterly earnings report.

 

By 2025, the cumulative dividend per share is as high as $220! If you had held 10,000 shares since 1970, the cumulative dividend received by now would have reached an astonishing $823,500.

 

If you just bought Coca-Cola and did nothing, including dividends, your annual compound rate of return would have reached 1.64%. Note that this is the average annual rate.

 

Even if the stock price has hardly increased, relying on dividends, your assets can still achieve significant appreciation!

 

Looking at the revenue contribution from various regions, the North American region, with its mature market system and large consumer group, contributes a relatively high proportion of revenue; the Asia-Pacific region, especially the Chinese and Indian markets, is growing rapidly and has become an important driving force for revenue growth.

 

Indeed, for a company like Coca-Cola that has few rivals in the American domestic market, the only source of performance growth lies in customers around the world, and this is what we need to pay attention to in this earnings report.

 

In the Asia-Pacific region, Coca-Cola products cover every country and region, from the developed markets of Japan and South Korea to the rapidly developing Chinese and Indian markets, as well as Southeast Asia, Oceania and other regions.

 

The revenue growth in the Asia-Pacific region is mainly due to the expansion of markets in populous countries such as China and India, as well as the successful launch of new products.

 

In the third quarter, Coca-Cola's unit-case sales in the Asia-Pacific region decreased by 2%. This is mainly because the growth of the flagship brand "Coca-Cola" was offset by the decline in bottled water, sports drinks, ready-to-drink coffee and tea, fruit juices, dairy-based beverages and plant-based beverages.

 

This data for this quarter is quite important. At the same time, we should also pay attention to the data changes of Coca-Cola's core products and innovative products.

Looking at the current stock price trend of Coca-Cola, it is at a neither high nor low level. But for a company like this, The fundamentals are unlikely to change much, if you believe in value investing, it is okay to buy it, after all, the high dividends are there.$KO