Coca-Cola (KO) Q1 Earnings Report Preview: What To Look For

Petr Huřťák /
2024/04/29 3:01 am EDT

Beverage company Coca-Cola (NYSE:KO) will be reporting results tomorrow before market hours. Here's what you need to know.

Coca-Cola beat analysts' revenue expectations by 2.8% last quarter, reporting revenues of $10.95 billion, up 7.4% year on year. It was a decent quarter for the company: Revenue beat analysts' expectations, and while operating margin missed, EPS was in line with analysts' expectations.

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 be flat year on year at $10.97 billion, slowing from the 4.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.70 per share.

Coca-Cola Total Revenue

The analysts covering the company have been growing increasingly bearish about the business heading into the earnings, with revenue estimates seeing five downward revisions over the last thirty days. Coca-Cola has a history of exceeding Wall Street's expectations, beating revenue estimates every single time over the past two years by 4% on average.

Looking at Coca-Cola's peers in the beverages and alcohol segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Keurig Dr Pepper delivered year-on-year revenue growth of 3.4%, beating analysts' expectations by 1.6%, and Constellation Brands reported revenues up 7.1%, topping Wall Street's consensus estimates by 2%. Keurig Dr Pepper traded up 4.3% following the results while Constellation Brands was down 1%.

Read our full analysis of Keurig Dr Pepper's results here and Constellation Brands's results here.

Growth stocks have been quite volatile to start 2024, and while some of the beverages and alcohol stocks have fared somewhat better, they have not been spared, with share price declining 4.3% over the last month. Coca-Cola is up 1.8% during the same time and is heading into earnings with an average analyst price target of $66.1 (compared to share price of $61.8).

When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right. Luckily, we’ve found one, a low-priced stock that is gushing free cash flow AND buying back shares. Click here to claim your Special Free Report on a fallen angel growth story that is already recovering from a setback.