Do I have to buy Coca -Cola stocks after importing Q1?
Beverage King is called tariffs can be managed.
coke (NYSE: KO) Stocks have been higher on Monday after recording an estimate after reporting a solid Q1 revenue on Monday.
Coca -Cola decreased 2% year -on -year, but generated $ 1.1 billion in sales in response to the analyst’s expectations. However, organic sales growth increased 6% year -on -year.
Net profit increased by 5% to $ 3.3 billion or 73 cents per share. This is better than the 72 cents per week that the analysts estimate.
James Quincy, chairman of the chairman and CEO, said, “Our achievements show the effects of all -weather strategies this quarter.” Despite the pressure on the major advanced markets, the power of global footprints has been successfully searched for a complex external environment.
Overall, the amount of unit cases increased by 2% in the quarter, which increased due to the increase in India, China and Brazil. In North America, the amount of unit cases decreased by 3%. The unit case volume is the number of devices or cases that Coca -Cola delivers to retailers.
The other major metrics are price/mix, which represents the price of the product. Overall, price/mix rose 5% in all regions and products. In North America, prices increased 8%, while Latin America increased 16%.
Officials said the inflation rate was low, which contributed to the price of inflation higher than the previous year. But in 2Q, it can be changed.
“Management” tariff impact
In March, US President Donald Trump imposed 25 percent tariffs on aluminum imported from the United States. Does it affect other soldiers using Coca -Cola and aluminum cans?
The company’s operation is mainly local, but there may be a headwind of tariffs. Officials said they could affect “specific components of the company’s cost structure throughout the market.” But officials called the potential impact “manage”.
John Murphy, the chief financial officer of Coca -Cola, said there are various ways to deal with potential tariffs in imported phones.
Murphy said, “Based on what we know today, the dynamic tariff environment can affect our system’s cost structure and market consumer sentiment, AP said.
He added that the company has “a lot of lever to help manage the influence.” According to the AP, it may include replacing aluminum suppliers or using more plastic or glass bottles.
Should I buy Coca -Cola stocks?
For one year, Coca -Cola has confirmed the prediction of 5%to 6%organic sales. However, net profit can see a currency headwind of 2% to 3%.
It also aims to grow similar currency neutral profits in 2024 and 2%to 3%of EPS growth, and in 2024 it is $ 2.88. Similar EPS percentage growth is expected to include a 5% to 6% currency headwind.
It is also expected to have about $ 9.5 billion in free cash flows.
Coca -Cola also increased dividends from 48.5 cents to 51 cents per week. It represents the 62nd consecutive dividend increase. Coca -Cola is one of the most consistent dividends that can be purchased at a yield of 2.84%.
In fact, Coca -Cola, a consumer’s necessity with titanium brands and reliable dividends, is a big stock in this type of uncertain market.
To show the influence of this dividend, Coca -Cola stocks have an average annual return of 5.9%over the past decade. However, when reinvesting dividends, the annual returns increases to 9.2%.
This year’s stock price rose 16%, and analysts will set an average price target of $ 78 per share, suggesting 85 growth this year.
The P/E ratio is slightly higher at the age of 29, so investors should be a little cautious. But in the long run, COCA-COLA was a solid and reliable actor with a large dividend. It may not be a bad option in the volatile and potentially slow -growing economy, but it can also wait until the value is slightly lowered.
