Coca-Cola Earnings: What To Look For From KO

Beverage company Coca-Cola (NYSE:KO) will be announcing earnings results this Tuesday before market open. Here’s what to expect.

Coca-Cola beat analysts’ revenue expectations by 0.6% last quarter, reporting revenues of $11.22 billion, flat year on year. It was a satisfactory quarter for the company, with a decent beat of analysts’ organic revenue estimates but EBITDA in line with analysts’ 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 grow 1.5% year on year to $12.55 billion, slowing from the 3.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.84 per share.

Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing 8 downward revisions over the last 30 days (we track 12 analysts). Coca-Cola has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 3.4% on average.

Looking at Coca-Cola’s peers in the consumer staples segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Constellation Brands’s revenues decreased 5.5% year on year, missing analysts’ expectations by 1.5%, and McCormick reported flat revenue, in line with consensus estimates. Constellation Brands traded up 4.5% following the results while McCormick was also up 3.6%.

Read our full analysis of Constellation Brands’s results here and McCormick’s results here.

Investors in the consumer staples segment have had steady hands going into earnings, with share prices up 1.3% on average over the last month. Coca-Cola’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $77.71 (compared to the current share price of $70.06).

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