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Warren Buffett Stocks: Coca-Cola Earnings In Line And Sales Beat, Kraft Heinz On Deck

Coca-Cola (KO) gave a solid outlook Tuesday after posting earnings largely in line with expectations, with Kraft Heinz (KHC) on deck early Wednesday.


The beverage and snack giants are among the top five Warren Buffett stock holdings by number of shares, according to Berkshire Hathaway (BRKB) filings. Outlook is being closely watched by investors amid inflation and the rise of obesity drugs.

Estimates: Analysts expected Coca-Cola earnings to increase 9% year over year, to 49 cents. Revenue was seen at $10.675 billion, FactSet shows.

Results: On Tuesday, Coca-Cola posted earnings of 49 cents, in line with views, on revenue of $10.948 billion, ahead of estimates. Year over year, Coca-Cola earnings grew 8.9% and sales rose 7.4%.

Higher prices help the beverage maker offset a 1% volume decline in North America during the quarter. Globally, unit case volume rose 2%, the earnings release showed. Rival PepsiCo (PEP) earlier reported North American Q4 beverage volumes fell 6%.

For 2024, the Dow Jones beverage giant guided revenue growth of 6%-7% and earnings growth of 4%-5%. It expects a 4% currency headwind in the current quarter.

Ahead of Coca-Cola's Q4 results, analysts were expecting 2024 revenue growth of 2.6% and earnings growth of 4.3%, FactSet shows.

Shares of Coca-Cola edged up a fraction to 60.12 Tuesday. Coca-Cola stock closed up 0.2% to 59.70, in Monday's stock market trading.

WK Kellogg (KLG) spiked 11.6% Tuesday as Q4 earnings and revenue beat.

The relative strength lines for Coca-Cola stock and Kraft Heinz, the blue lines in the charts provided, show significant lag. However, their 50-day moving averages are rising and recently crossed above the 200-day lines, a positive sign. Both consumer staples stocks spent much of the past year stuck below those support levels.

Kraft Heinz Earnings, Kraft Heinz Stock

Estimates: Analysts expect Kraft Heinz earnings to decrease 9%, year over year, to 77 cents. Revenue is seen falling 5% to $6.985 billion, the first drop in six quarters.

Results: Check back Wednesday before the open.

The packaged foods giant may offer a 2024 growth outlook as well.

Kraft Heinz stock eased a fraction at 36.08 Tuesday.

Warren Buffett Stocks

The two Warren Buffett stocks have navigated through food cost inflation with price hikes. Coca-Cola managed to pass rising costs to consumer without hurting sales.

But management warned food shoppers are starting to come under pressure. Another concern for investors is a new breed of obesity drugs, such as Wegovy and Ozempic, that some worry could dent food and beverage sales.

Both Coca-Cola and Kraft Heinz are dividend stocks, which Berkshire Hathaway chief and investing legend Buffett likes. Coca-Cola stock bears a 3.08% yield. Kraft Heinz yields 4.4%.


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