In partnership with

Good morning investors!

During the ever important earnings season, we publish our “Earnings Recap” — an in-depth summary of the earnings reports for stocks that we cover on a regular basis.

Earnings season is in full swing and we just had one of the biggest weeks of the season — let’s dive in.

Monthly Meeting

🚨 REMINDER 🚨

This Saturday, 2/15, is the Monthly Meeting exclusively for Edge+ members. The meeting will be hosted by Mark at 10 AM EST.

Here's what we will be covering

• A deep dive into Mark's personal portfolio, recent moves, and his top 10 individual holdings 

• Exclusive insights into the stocks we’re watching closely, complete with Edge scores and analysis

• A breakdown of the most intriguing charts we’ve seen recently

• PLUS, a live, interactive Q&A to get your burning questions answered

Coca-Cola (KO)

Coca-Cola delivered better-than-expected earnings and revenue growth in Q4 2024, driven by strong organic revenue growth and North American performance.

The company reported net income of $2.2 billion, representing an 11% YoY increase, while revenue reached $11.54 billion, up 5% YoY, surpassing analyst estimates of $10.68 billion. EPS came in at $0.55, exceeding expectations by 5.77%.

Organic revenue grew 14% YoY, fueled by higher pricing strategies and strong execution. North America revenue surged 16% YoY to $4.7 billion, while Europe, Middle East, and Africa revenue grew 6% YoY to $1.8 billion.

Operating income increased 19% YoY to $2.7 billion, despite a 7% rise in operating expenses to $4.2 billion. However, operating cash flow declined sharply by 41% YoY to $6.8 billion, impacted by a $6 billion IRS litigation deposit.

For FY 2025, Coca-Cola expects organic revenue growth of 5%-6% YoY, EPS growth of 2%-3% YoY, and free cash flow of $9.5 billion.

KO shares are +8.5% so far this week.

Cisco (CSCO)

Cisco delivered solid quarterly results, exceeding revenue and EPS expectations, driven by strong growth in its security segment despite a decline in networking revenue.

The company reported net income of $2.4 billion, a decline of 8% YoY, on revenue of $13.99 billion, up 9% YoY and slightly above the $13.87 billion estimate. EPS came in at $0.94, beating expectations by 3.30%.

Security revenue surged 117% YoY to $2.1 billion, leading overall growth, while networking revenue declined 3% YoY to $6.9 billion. Operating income increased 1% YoY to $3.1 billion, though operating expenses jumped 17% YoY to $6.0 billion, reflecting higher investments in R&D, which rose 18% YoY to $2.3 billion. Operating cash flow surged 177% YoY to $2.2 billion, while free cash flow came in at $1.9 billion, up 217% YoY.

The company also increased its quarterly dividend by 3% to $0.41 per share and authorized $1.2 billion in share buybacks.

For Q3, Cisco expects revenue between $13.9 billion and $14.1 billion and EPS between $0.90 and $0.92. Full-year guidance was raised slightly, with FY revenue now expected between $56.0 billion and $56.5 billion and EPS between $3.68 and $3.74.

CSCO shares are +2.1% so far this week.

Sponsored by Blind Barrels

Voted "Best Whiskey Gift Of The Year" by Men's Gear.

Blind Barrels connects craft spirit lovers with rare craft bottles from across the country through double-blind tasting experiences at home. We’re shining a light on small distilleries & it’s your chance to join us.

Become A Shareholder

Read the Offering information carefully before investing. It contains details of the issuer’s business, risks, charges, expenses, and other information, which should be considered before investing. Obtain a Form C and Offering Memorandum at https://wefunder.com/blind.barrels/

McDonald’s (MCD)

McDonald's reported a mixed quarter, missing revenue and earnings estimates as weak U.S. comparable sales offset strength in franchise operations.

The company posted net income of $2.0 billion, down 1% YoY, with total revenue of $6.39 billion, flat year over year and slightly below the $6.45 billion analyst estimate.

Franchise revenue, which represents the majority of McDonald's business, grew 2% YoY to $4.0 billion, while company-owned store revenue declined 7% to $2.3 billion, reflecting continued shifts toward the franchise model. Global comparable sales edged up 0.4%, but U.S. comp sales fell 1.4%, suggesting a more cautious consumer despite menu innovation efforts.

Operating income increased 2% YoY to $2.7 billion, while operating expenses declined 2%, improving profitability. The company also repurchased $2.8 billion in shares during FY 2024.

For FY 2025, McDonald's emphasized its focus on value-driven offerings, menu innovation, and marketing strategies to regain momentum. While no formal financial guidance was provided, management remains committed to driving systemwide sales growth and optimizing its franchise-led model for long-term expansion.

MCD shares are +5.0% so far this week.

The Investor’s Edge Discord is a HUGE benefit of being a subscriber - don’t miss out!

Before we continue with the rest of the earnings recap, please don’t forget to join our our Discord server!

If you are only reading the newsletter, you are only getting a fraction of the benefits of being an Edge subscriber. Here’s what you’re missing in the Discord:

Join us on Discord and let's level up our investing game together. The future of trading awaits—and you're invited to be a part of it! 🌟

Shopify (SHOP)

Shopify delivered a strong Q4 2024, beating revenue and earnings expectations as merchant and subscription revenue surged amid a continued e-commerce expansion.

Subscribe to Premium to read the rest.