Coca-Cola (KO) To Report Q3 Earnings: What Should You Expect?
Zacks Investment Research | Oct 09, 2019 09:27PM ET
The Coca-Cola Company (NYSE:KO) is scheduled to report third-quarter 2019 earnings on Oct 18, before the opening bell. The company boasts an impressive surprise history, having surpassed earnings estimates in eight of the past nine quarters. Moresover, it delivered sales beat in the last eight quarters.
The Zacks Consensus Estimate for the company’s third-quarter earnings is pegged at 56 cents, which suggests a 3.5% decline from the year-ago quarter’s reported figure. However, estimates remained unchanged in the last 30 days. The consensus estimate for its quarterly revenues is pegged at $9.48 billion, indicating growth of 15% from the year-ago quarter’s reported number.
Coca-Cola Company (The) Price and EPS Surprise
industry ’s growth of 16.1%.
Despite witnessing robust growth, the company’s sales and earnings have persistently been hurt by adverse currency rates. It estimates currency headwinds to persist and impact results in the third quarter and 2019, as is reflected by its guidance. The company estimates unfavorable currency to affect revenues by 3% and comparable operating income by 6% in the third quarter. For 2019, unfavorable currency is now likely to affect revenues by 4% (compared with the previously mentioned 3-4% headwinds) and comparable operating income by 7-8% (compared with currency headwinds of 6-7% stated earlier).
Though Coca-Cola raised sales and operating income view for 2019, it reiterated the soft earnings outlook. For 2019, the company continues to expect comparable earnings to be down 1% to up 1% from $2.08 recorded in 2018. Currency headwinds are likely to be key deterrents to earnings.
We expect the company’s efforts — including improved marketing, innovation, strong brand power, focus on driving revenues by improved price/mix, and refranchising initiatives — to boost third-quarter 2019 results. However, currency-related headwinds should continue to mar results.
Zacks Model
Our proven model does not predict that Coca-Cola is likely to beat earnings estimates this quarter. This is because a stock needs to have — a positive Original post
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