Coca-Cola shares closed Friday's session at $79.03, marking a 0.66% gain as investors positioned themselves ahead of the company's fourth-quarter and full-year 2025 earnings release scheduled for Tuesday, February 10. The beverage giant will report before the market opens, followed by an investor conference call at 8:30 a.m. ET.
Strategic Portfolio Shift
The company announced it will discontinue its frozen product offerings, including the Minute Maid frozen line, across the United States and Canada. A spokesperson cited evolving consumer preferences as the rationale, with the phaseout expected to conclude during the first quarter of 2026. Existing inventory will remain available in stores until supplies are depleted.
According to late Friday options pricing, traders are anticipating approximately a 3% swing in the stock following the earnings announcement. Coca-Cola's shares have climbed roughly 13% year-to-date. Visible Alpha estimates, referenced by Investopedia, project Q4 revenue of $12 billion and adjusted earnings per share of $0.57.
Analyst Outlook and Executive Activity
RBC Capital Markets analyst Nik Modi maintained an Outperform rating with a $78 price target, anticipating a "straightforward" earnings report and guidance in line with consensus expectations. However, Modi noted a more neutral stance given the stock's recent rally and the market's current tilt toward defensive consumer staples.
In a separate regulatory filing, it was disclosed that CEO James Quincey sold 337,824 shares on February 3 at an average price of approximately $77.10, totaling about $26 million. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.
The company also confirmed that CEO-elect Henrique Braun and CFO John Murphy will present at the CAGNY conference on February 17.
Market Context and Risks
Broader macroeconomic factors could influence trading. Key U.S. economic data, including jobs figures on February 11 and the Consumer Price Index report on February 13, may impact interest rate expectations and affect defensive sectors like consumer staples.
While the frozen product exit appears to be a portfolio optimization move rather than a major strategic shift, investor focus will likely center on Coca-Cola's plans to drive growth in higher-margin segments, such as zero-sugar and premium brands, while maintaining overall volume. The upcoming earnings and guidance will provide a critical gauge of whether the stock's 2025 rally is supported by fundamental performance.
