Should You Buy Coca-Cola (KO) Stock Ahead of Fourth-Quarter Earnings?

What's Happening With KO View more about KO >

Soft drink maker Coca-Cola (KO) will report fourth-quarter earnings February 14 before the market open. The consensus for the quarter calls for earnings of $0.43 on revenue of $7.05 billion. During the same period last year the company posted earnings of $0.39 and revenue of $7.5 billion.

Technical Analysis

KO was recently trading at $49.23 down $1.61 from its 12-month high and $7.77 above its 12-month low. InvestorsObserver’s Stock Score Report gives KO a 92 long-term technical score and a 90 short-term technical score. The stock has recent support above $48 and recent resistance below $50.50. Of the 13 analysts who cover the stock 6 rate it Strong Buy, 0 rate it Buy, 7 rate it Hold, 0 rate it Sell, and 0 rate it Strong Sell, KO gets a score of 72 from InvestorsObserver’s Stock Score Report.

Analysts' Thoughts

Despite a shift in consumer taste away from sugary soft drinks, Coca Cola has continued to hold its bottom line thanks to additional focus on its non-carbonated beverages and snacks. Analysts expect to see earnings start to climb moving forward, and forecast profits to rise 9.4% during the current year and at an average annual rate of 6.6% over the next five years. If the company hits its earnings estimate for the quarter it would mark year over year growth of 10.2% despite lower sales, but the street expects even better results with a whisper number a penny above the consensus at $0.44.

KO stock enjoyed a strong second half of 2018 and while the stock did experience selling pressure during the market correction it has recovered nicely during the first part of 2019 and is once again just shy of its all-time high. Coca-Cola has positive better than expected numbers on the top and bottom line the last three quarters, and another strong set of numbers should allow shares to climb to a new record high. Analysts have an average price target of $51.00 on the stock.

KO
About Coca-Cola Company (The)

The Coca-Cola Company is the largest nonalcoholic beverage company in the world, with over $30 billion in annual revenue. Its portfolio includes a variety of carbonated and noncarbonated brands, including Coca-Cola, Diet Coke, Fanta, Sprite, Minute Maid, Powerade, and Dasani. The firm has both concentrate and finished product operations, with concentrate sales contributing nearly two thirds of revenue. Trademark Coca-Cola contributes 45% of unit case volumes worldwide. Coca-Cola generates the majority of its revenue outside of the United States. The acquisition of Costa, closed in January 2019, should bolster its presence in the coffee category, particularly in the U.K., where Costa has more than a one third share of coffeehouses.

  • Last Price:
    $51.92
  • Previous Close:
    $51.55
  • Change:
    $0.37 (0.72%)
  • Open:
    $51.74
  • Volume:
    10,451,576
  • Average Volume (100 Day):
    14,775,024
  • Market Capitalization:
    $221.5 B
  • Day's Range:
    $51.70 - $52.20
  • Dividend Yield:
    3.10%
  • 52-week Range:
    $52 - $42.99
  • P-E:
    32.70
  • EPS:
    $1.58
  • Earnings Date:
    7/24/19
  • Ex Dividend Date:
    6/13/19
  • Sector:
    Consumer Defensive
  • Industry:
    Beverages - Soft Drinks
  • Analyst Average Recommendation:
    Moderate Buy

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