Beverage company Coca-Cola (NYSE:KO) will be announcing earnings results tomorrow morning. Here’s what to look for.
Coca-Cola beat analysts’ revenue expectations by 2.9% last quarter, reporting revenues of $11.95 billion, flat year on year. It was a strong quarter for the company, with a solid beat of analysts’ organic revenue estimates and a decent beat of analysts’ EPS estimates.
Is Coca-Cola a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Coca-Cola’s revenue to decline 2.2% year on year to $10.71 billion, a reversal from the 7.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.52 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Coca-Cola has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 2.9% on average.
Looking at Coca-Cola’s peers in the beverages, alcohol, and tobacco segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Philip Morris delivered year-on-year revenue growth of 7.3%, beating analysts’ expectations by 2.8%, and Altria reported revenues up 1.6%, topping estimates by 0.6%. Philip Morris traded up 10.2% following the results while Altria’s stock price was unchanged.
Read our full analysis of Philip Morris’s results here and Altria’s results here.
Investors in the beverages, alcohol, and tobacco segment have had fairly steady hands going into earnings, with share prices down 1.7% on average over the last month. Coca-Cola is up 3.7% during the same time and is heading into earnings with an average analyst price target of $71.71 (compared to the current share price of $63.96).
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