Coca Cola Femsa (NYSE:KOF) Announces Earnings Results, Misses Expectations By $0.17 EPS

Coca Cola Femsa (NYSE:KOF) released its earnings results on Monday. The company reported $1.72 EPS for the quarter, missing analysts’ consensus estimates of $1.89 by ($0.17), Zacks reports. The business had revenue of $4.41 billion for the quarter, compared to the consensus estimate of $4.35 billion. Coca Cola Femsa had a return on equity of 15.83% and a net margin of 8.05%.

Here are the key takeaways from Coca Cola Femsa’s conference call:

• Record third-quarter volumes rose 5.3% year over year to 1.1 billion unit cases, while revenue increased 10.9% to MXN 79.7 billion. Growth was broad-based across all regions, led by Colombia, Guatemala, Brazil, and Mexico.
• Gross margin expanded 140 basis points to 46.5%, supported by lower sweetener and PET costs, hedging benefits, and favorable currency movements. Adjusted EBITDA margin improved to 21.1%, although the reported results included a MXN 1.1 billion non-recurring insurance recovery in Brazil.
• Commercial momentum remained strong, with share gains and portfolio innovation across markets. Mexico benefited from new products such as Coca-Cola Triple Zero and Topo Chico Sparkling beverages, while Brazil saw strong growth in Coca-Cola Zero, flavors, and still beverages; Colombia volumes increased 15.9%.
• Mexico profitability remained pressured despite sequential improvement, as a greater mix of multi-serve products, higher labor and freight costs, marketing expenses, and operating foreign-exchange losses weighed on margins. Management also expects ongoing labor and currency pressures, requiring further revenue-growth-management actions.
• Management highlighted uncertainty around potential Brazilian excise-tax changes and a shorter workweek, as well as weather and capacity risks in Colombia and Venezuela. The company plans to offset industry-wide cost pressures through pricing, productivity initiatives, hedging, and digital tools, and expects to announce a shareholder capital-return mechanism in early 2027.

Coca Cola Femsa Trading Down 1.8%

NYSE KOF opened at $115.92 on Tuesday. The firm has a market cap of $194.83 billion, a PE ratio of 18.28, a price-to-earnings-growth ratio of 1.60 and a beta of 0.52. Coca Cola Femsa has a 1-year low of $84.93 and a 1-year high of $122.14. The company has a current ratio of 1.04, a quick ratio of 0.87 and a debt-to-equity ratio of 0.48. The stock has a 50-day moving average of $112.14 and a 200-day moving average of $106.65.

Coca Cola Femsa Cuts Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, October 23rd. Stockholders of record on Friday, October 9th were issued a $1.0838 dividend. This is a decrease from Coca Cola Femsa’s previous quarterly dividend of $1.1248. This represents a $4.34 annualized dividend and a dividend yield of 3.7%. The ex-dividend date was Friday, October 9th. Coca Cola Femsa’s dividend payout ratio (DPR) is presently 59.31%.

Wall Street Analyst Weigh In

Several research firms recently commented on KOF. HSBC reiterated a “hold” rating and issued a $116.00 price objective (down from $120.00) on shares of Coca Cola Femsa in a research note on Tuesday, July 28th. Wall Street Zen lowered Coca Cola Femsa from a “strong-buy” rating to a “buy” rating in a research note on Saturday, September 12th. Barclays increased their price objective on Coca Cola Femsa from $115.00 to $122.00 and gave the stock an “equal weight” rating in a report on Wednesday, July 29th. JPMorgan Chase & Co. increased their price objective on Coca Cola Femsa from $114.00 to $127.00 and gave the stock a “neutral” rating in a report on Wednesday, July 15th. Finally, Weiss Ratings upgraded Coca Cola Femsa from a “buy (b)” rating to a “buy (b+)” rating in a research note on Thursday, October 8th. Four analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. According to MarketBeat, Coca Cola Femsa has a consensus rating of “Hold” and an average price target of $120.83.

Key Headlines Impacting Coca Cola Femsa

Here are the key news stories impacting Coca Cola Femsa this week:

• Positive Sentiment: Consolidated volume increased 5.3% to a record 1.1 billion unit cases, while total revenue rose 10.9% to 79.7 billion Mexican pesos. The results point to continued demand growth across Coca-Cola FEMSA’s markets. Coca-Cola FEMSA: 3 Key Takeaways for Long-Term Investors
• Positive Sentiment: Revenue of approximately $4.41 billion exceeded the consensus estimate of $4.31 billion, indicating that sales momentum was better than analysts expected. Coca-Cola FEMSA Earnings Report
• Neutral Sentiment: Management’s third-quarter earnings call provided additional context on volume, revenue, and operating performance. Investors are assessing the company’s outlook and whether the strong top-line growth can translate into improved profitability. Coca-Cola FEMSA Q3 2026 Earnings Call Transcript
• Negative Sentiment: Adjusted earnings per share came in at $1.72, below the $1.89 analyst consensus by $0.17. The shortfall suggests that higher costs, currency effects, or other pressures may have limited the benefit of the company’s revenue and volume gains.
• Negative Sentiment: The earnings miss is likely outweighing the revenue beat in the near term, particularly with the shares trading near their 52-week high. Coca-Cola FEMSA reported an 8.05% net margin, underscoring investor sensitivity to profitability and execution.

About Coca Cola Femsa

Coca-Cola FEMSA, SAB. de C.V. is the world’s largest Coca-Cola franchise bottler by sales volume. The company produces, markets, sells and distributes beverages under The Coca-Cola Company’s brands, including Coca-Cola, Sprite, Fanta and Powerade, as well as bottled water, juices, dairy products, sports drinks, energy drinks and other beverage products.

The company serves consumers through a broad distribution network that includes traditional retail stores, supermarkets, convenience stores, restaurants, food-service businesses and other commercial channels.