Beverage stock Coca-Cola was testing resistance last week ahead of the company’s latest earnings release.
KO – Weekly Chart
Coke shares tested highs from 2022-23 last week at $64.56-$65.02.
Coca-Cola beat analysts’ revenue estimates by 2.4% in the previous quarter, reporting revenue of $11.23 billion, up 2.5% over the past year. That marked a solid quarter for the company, with an impressive beat on analysts’ revenue growth estimates and a decent beat on analysts’ gross margin estimates.
This quarter, analysts expect a drop in Coca-Cola’s revenue of -1.8% year over year to $11.75 billion. That would be down from the 5.9% increase recorded in the same quarter last year. Adjusted earnings are expected to be $0.81 per share.
Analysts studying Coke have reconfirmed their estimates in the previous 30 days, suggesting they expect to see continued strength in the business this earnings season. Coca-Cola also has a history of beating Wall Street’s expectations, beating revenue estimates every time over the past two years by 3.5% on average.
Some of Coca-Cola’s peers have already reported their Q2 results, giving investors a hint at what they can expect. Constellation Brands produced year-on-year revenue growth of 5.8%, meeting analysts’ expectations, while WD-40 reported revenue up 9.4%, beating estimates by 6.3%. Constellation Brands’s stock price was unchanged after the results, while WD-40 was up 4%.
Coca-Cola’s stock has increased 2.1% over the last month. It is heading into earnings with an average analyst price target of $68.5.
Billionaire US investor Warren Buffett has owned Coke shares since 1988. He invested $1.3 billion in the company and now owns 400 million shares worth over $24.7 billion.
