By Evie Liu

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 28, 2025 17:02 ET (21:02 GMT)

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