By Evie Liu and Mackenzie Tatananni

Coca-Cola stock rose in premarket trading Tuesday after the soda-maker posted better-than-expected earnings and said the impacts of global macro uncertainty would be "manageable."

Adjusted earnings of 73 cents a share narrowly beat the 72 cents a share Wall Street was anticipating, according to FactSet. Net revenue fell 2% to $11.13 billion in the first quarter, driven by currency headwinds and the impact of refranchising bottling operations. Analysts were expecting closer to $11.16 billion.

The soda maker adjusted its full-year guidance, forecasting a 2% to 3% currency headwind to comparable net revenue "in addition to a slight headwind from acquisitions, divestitures and structural changes." Comparable earnings-per-share percentage growth is also expected to include a 5% to 6% currency headwind.

"The company's operations are primarily local, however, it is subject to global trade dynamics which may impact certain components of the company's cost structure across its markets," Coca-Cola said.

Shares were up 1% to $72.50 in premarket trading.

This is breaking news. Read a preview of Coca-Cola's earnings below and check back for more analysis soon.

Coca-Cola is set to report earnings on Tuesday before the market opens. Wall Street isn't very optimistic.

For the first quarter of 2025, analysts polled by FactSet expect the company to post 72 cents in earnings per share, flat from the same quarter a year ago. Sales are expected to come at $11.16 billion, down from $11.30 billion a year ago.

Like many companies, Coca-Cola is facing a challenging consumer environment as Americans pull back from spending because of inflation pressure and recession fears.

There are also concerns about the impact of GLP-1 weight-loss drugs and the Make America Healthy Again movement. Robert F. Kennedy Jr., the head of the Department of Health and Human Services, has long blamed sodas for the high obesity rate and the poor health of Americans.

A group of states has filed or plans to file a waiver request with the USDA that would allow them to prohibit soda purchases in the food stamp program. Agriculture Secretary Brooke Rollins has already voiced support for those requests.

Last week, rival PepsiCo posted first-quarter earnings and revenue that were lower than the same-period last year. The snack-and-beverage company also lowered its forecast for the year.

At Coca-Cola's last earnings report in February, the company issued full-year guidance calling for organic revenue growth of 5% to 6% in 2025, a marked decrease from the 12% growth reported in 2024. Management anticipates adjusted earnings to grow 2% to 3% in 2025.

Coca-Cola stock is up 15% year to date.

Write to Evie Liu at evie.liu@barrons.com

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April 29, 2025 07:30 ET (11:30 GMT)

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