Companies and Brands

What to Look for in Coca-Cola Earnings

Chris Lange

Published: April 19, 2016 11:45 am

Last Updated: January 13, 2020 10:36 am

Coca-Cola Co. (NYSE: KO) is set to report its first-quarter financial results before the markets open on Wednesday. The consensus estimates from Thomson Reuters are $0.44 in earnings per share (EPS) on $10.28 billion in revenue. In the same period of last year, it posted EPS of $0.48 and $10.70 billion in revenue.

This stock remains a top Warren Buffet holding and offers not only safety, but an incredible strong worldwide brand. Coca-Cola is the world’s largest beverage company, refreshing consumers with more than 500 sparkling and still brands. Globally, it is the number one provider of sparkling beverages, ready-to-drink coffees and juices and juice drinks.

Led by Coca-Cola, one of the world’s most valuable and recognizable brands, the company’s portfolio features 20 billion-dollar brands, including Diet Coke, Fanta, Sprite, Coca-Cola Zero, vitaminwater, Powerade, Minute Maid, Simply, Georgia and Del Valle. Through the world’s largest beverage distribution system, consumers in more than 200 countries enjoy its beverages at a rate of more than 1.9 billion servings a day.

The strong U.S. dollar may not continue to be a headwind to the international business as the uptrend seems to have rolled over. The company has expanded its product lines, and it posted fourth-quarter earnings that top Wall Street analysts were very encouraged by.

A few analysts weighed in on Coca-Cola prior to the release of the earnings report:

• Jefferies has a Neutral rating with a $48 price target.
• Sanford Bernstein has a Buy rating with a $50 price target.
• Susquehanna reiterated a Hold rating with a $41 price target.
• RBC Capital reiterated a Buy rating with a $52 price target.
• Merrill Lynch reiterated a Buy rating with a $52 price target.

So far in 2016, this stock has outperformed the broad markets with a more than 8% gain. Over the past 52 weeks, the stock is up over 18%.

Shares of Coca-Cola were trading at $46.47 on Tuesday, with a consensus analyst price target of $47.73 and a 52-week trading range of $36.56 to $47.13.