Coca-Cola Reported Mixed Q1 Results, Expects ‘Manageable’ Tariff Impact

Coca-Cola (KO) on Tuesday reported first-quarter sales below analysts’ estimates but profit that topped expectations, as the beverage giant navigates tariff uncertainty.

The company said its “comparable,” or adjusted, earnings per share came in at $0.73 on revenue that declined 2% year-over-year to $11.1 billion. Analysts expected $0.72 and $11.22 billion, respectively.

“Despite some pressure in key developed markets, the power of our global footprint allowed us to successfully navigate a complex external environment,” CEO James Quincey said.

Coca-Cola Says Operations ‘Subject to Global Trade Dynamics’

In an update to its full-year outlook, Coca-Cola said that its “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. At this time, the company expects the impact to be manageable.”

Shares of Coca-Cola were up 1% immediately following Tuesday’s report. They entered the day up about 15% since the start of the year.

Earlier this month, analysts from JPMorgan raised their price target for the soda maker’s stock, as they said it could see a relatively limited tariff impact and prove to be a “port in a storm” amid market uncertainty. The results follow those of rival PepsiCo (PEP), which posted a mixed report last week and cut its full-year profit outlook.