Coca-Cola Beats Earnings but Faces Global Demand Slump; Boeing Posts $6B Quarterly Loss

Today’s Earnings Report Recap: Coca-Cola, Boeing, and Other Companies

Earnings reports from major companies today showcased mixed performances across sectors, with Coca-Cola and Boeing being two of the standout names. While Coca-Cola exceeded expectations despite headwinds, Boeing struggled with significant losses. Below is a breakdown of their results and how other companies fared.

Coca-Cola: Higher Prices Offset Weak Demand

Coca-Cola surpassed analysts’ expectations for the third quarter, aided by price increases that compensated for sluggish demand. The beverage giant reported earnings per share of 77 cents, beating the 74-cent estimate, and posted adjusted revenue of $11.95 billion, slightly above expectations. However, net income dropped to $2.85 billion from $3.09 billion in the previous year, reflecting ongoing challenges.

Coke’s unit case volume—a key measure of demand—fell by 1% globally, signaling soft demand across several regions. North America’s volume remained flat, with a decline in non-soda products offsetting growth in soft drinks. International markets, particularly Europe, the Middle East, Africa, and Asia Pacific, saw 2% volume declines. The company cited China and Turkey as weak spots. On the upside, Coca-Cola’s 10% price increase bolstered revenue, particularly in inflation-hit markets like Argentina.

Looking ahead, Coca-Cola revised its 2024 forecast upward, projecting organic revenue growth of 10%, at the higher end of its previous 9%-10% range.

Boeing: Major Loss Amid Ongoing Challenges

Boeing reported a steep $6 billion loss in the third quarter, the largest since the pandemic era. CEO Kelly Ortberg, new to the role, emphasized the need for a leaner organization and improved product quality, following safety incidents like the 737 Max 9 door malfunction. Revenue hit $17.84 billion, matching estimates, but losses per share reached $10.44, close to expectations of $10.52.

Labor unrest also looms over Boeing, with over 32,000 machinists on strike since mid-September. The strike has cost Boeing $1 billion per month, and a new contract proposal offering 35% raises over four years will be voted on today. A favorable vote would end the disruption in Boeing’s Seattle-area factories, which is crucial for stabilizing the company’s operations.

Other Companies: Mixed Performances

• Enphase Energy dropped 15% after delivering weaker-than-expected fourth-quarter guidance.
• AT&T rose over 2%, exceeding earnings expectations but missing on revenue.
• Hilton Worldwide and Winnebago Industries both posted disappointing results, with their stocks falling 4.3% and 8%, respectively.
• Texas Instruments saw a 3% boost after an earnings beat.
• Seagate Technology and Deutsche Bank both slid over 2% after delivering lower-than-expected guidance and profits.
• GE Vernova fell 4% after missing profit expectations despite surpassing revenue forecasts.

Conclusion: A Cautious Outlook

Today’s earnings reports painted a cautious picture for multiple industries. While Coca-Cola showed resilience through pricing power, Boeing’s challenges highlighted deeper operational issues. Other companies delivered mixed results, with many missing revenue or profit forecasts, signaling potential turbulence in upcoming quarters. For now, the market outlook remains cautious with bearish trends, especially for companies grappling with labor strikes and operational restructuring.