The Coca-Cola Company (KO), headquartered in Atlanta, Georgia, is a beverage company that manufactures, markets, and sells various nonalcoholic beverages worldwide. With a market cap of $267.3 billion, the company also distributes and markets juice and juice-drink products to retailers and wholesalers worldwide. The beverage giant is expected to announce its fiscal fourth-quarter earnings for 2024 before the market opens on Tuesday, Feb. 11.
Ahead of the event, analysts expect KO to report a profit of $0.52 per share on a diluted basis, up 6.1% from $0.49 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports.
For the full year, analysts expect KO to report EPS of $2.85, up 6% from $2.69 in fiscal 2023. Its EPS is expected to rise 3.9% year over year to $2.96 in fiscal 2025.
KO stock has underperformed the S&P 500’s ($SPX) 24.4% gains over the past 52 weeks, with shares up 2.3% during this period. Similarly, it underperformed the Consumer Staples Select Sector SPDR Fund’s (XLP) 4.7% gains over the same time frame.
Coca-Cola's underperformance stems from weak consumer demand in Europe, economic pressures, and declining convenience store traffic. The company faces additional challenges, including a lawsuit alleging plastic pollution and deceptive practices, soft volume trends across operating segments, and unfavorable currency rates. Macroeconomic disruptions, such as rising internal costs, slowing consumer spending, and geopolitical challenges, also pose concerns, while the company's premium valuation and exposure to inflationary pressures raise investor worries, ultimately impacting Coca-Cola's profitability.
On Oct. 30, KO shares closed up marginally after reporting its Q3 results. Its adjusted EPS grew 4.1% year over year to $0.77. The company’s adjusted revenue stood at $11.9 billion, up marginally year over year.
Analysts’ consensus opinion on KO stock is bullish, with a “Strong Buy” rating overall. Out of 22 analysts covering the stock, 17 advise a “Strong Buy” rating, one suggests a “Moderate Buy,” and four give a “Hold.” KO’s average analyst price target is $73.86, indicating a potential upside of 19.6% from the current levels.
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