Coca-Cola (KO, $47.47) Q2 earnings beat estimates; revenue disappoints
Coca-Cola Co. beat earnings expectations for the second quarter, but revenues missed estimates.
The beverage giant’s adjusted earnings for the three months ending June came in at 42 cents per share, down -33.3% year-over-year and ahead of the Street consensus estimate of 40 cents per share.
However, revenue of $7.2 billion fell short of analysts' estimates of a $7.57 billion. The figure was also -28% lower from the same quarter last year.
The company cited " pressure in away-from-home channels, which represent approximately half of the company’s revenues" (and include clients such as sports stadiums and restaurants) as factors behind the revenue decline.
The company withdrew its full-year earnings guidance on April 21. It mentioned that "ongoing uncertainty" continues to be a challenge to the process of near-term profit forecast. But it said that currency headwinds of 'high single-digits' are expected to impact operating earnings, on U.S. dollar strength.
According to Tickeron, KO's in Uptrend: Moving Average Convergence Divergence (MACD) Histogram crosses above signal line
This is a Bullish indicator signaling KO's price could rise. Traders may explore going long on the ticker or buying call options. In 22 of 56 cases where KO's MACD histogram became positive, the price rose further within the following month. The odds of a continued Uptrend are 39%.
Current price $47.44 crossed the support line at $45.96 and is trading between $48.01 resistance and $45.96 support lines. Throughout the month of 06/17/20 - 07/20/20, the price experienced a -0.99% Downtrend, while the week of 07/13/20 - 07/20/20 shows a +2% Uptrend.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator exceeded the 0 level on July 10, 2020. Traders may consider buying the ticker or exploring call options. In 32 of 92 cases where the ticker's Momentum Indicator exceeded 0, its price rose further within the subsequent month. The odds of a continued Uptrend are 35%.
The price moved above its 50-day Moving Average, which indicates a change from a Downtrend to an Uptrend. In 18 of 48 similar backtested cases where KO's price crossed above its 50-day Moving Average, its price rose further within the subsequent month. The odds of a continued Uptrend are 38%.
Bearish Trend Analysis
The Stochastic Indicator demonstrated that the ticker has stayed in the overbought zone for 4 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
The 10-day Moving Average for this ticker crossed below its 50-day Moving Average on June 26, 2020. This can be construed as a sell signal, indicating that the trend is shifting lower. In 4 of 18 cases where KO's 10-day Moving Average crossed below its 50-day Moving Average, its price fell further within the subsequent month. The odds of a continued Downtrend are 22%.
The higher Bollinger Band was broken -- a price fall is expected as the ticker heads toward the middle band, which invites the trader to consider selling or shorting the ticker, or exploring put options. In 15 of 52 cases where KO's price broke its higher Bollinger Band, its price dropped further during the following month. The odds of a continued Downtrend are 29%.
The Aroon Indicator entered a Downtrend today. In 29 of 87 cases where KO Aroon's Indicator entered a Downtrend, the price fell further within the following month. The odds of a continued Downtrend are 33%.
Fundamental Analysis (Ratings)
Tickeron has a positive outlook on this ticker and predicts a further increase by more than 4.00% within the next month with a likelihood of 58%. During the last month, the daily ratio of advancing to declining volumes was 1.08 to 1.
The Tickeron SMR rating for this company is 13 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is 56 (best 1 - 100 worst), indicating fairly steady price growth. KO’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of 63 (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (10.91) is normal, around the industry mean (4.31). P/E Ratio (19.88) is within average values for comparable stocks, (87.74). Projected Growth (PEG Ratio) (0.39) is also within normal values, averaging (0.92). KO has a moderately high Dividend Yield (2.89) as compared to the industry average of (1.30). P/S Ratio (4.98) is also within normal values, averaging (4.61).
The Tickeron Profit vs. Risk Rating rating for this company is 64 (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 71, placing this stock slightly better than average.
The Tickeron PE Growth Rating for this company is 86 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
KO in upward trend: price expected to rise as it breaks its lower Bollinger Band on October 23, 2024
KO may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In of 40 cases where KO's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Indicator entered the oversold zone -- be on the watch for KO's price rising or consolidating in the future. That's also the time to consider buying the stock or exploring call options.
The Stochastic Oscillator is in the oversold zone. Keep an eye out for a move up in the foreseeable future.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where KO advanced for three days, in of 352 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on October 23, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on KO as a result. In of 80 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
KO moved below its 50-day moving average on October 21, 2024 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for KO crossed bearishly below the 50-day moving average on October 14, 2024. This indicates that the trend has shifted lower and could be considered a sell signal. In of 16 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where KO declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for KO entered a downward trend on October 09, 2024. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 70, placing this stock better than average.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (10.081) is normal, around the industry mean (75.858). P/E Ratio (24.567) is within average values for comparable stocks, (31.998). Projected Growth (PEG Ratio) (3.054) is also within normal values, averaging (5.544). Dividend Yield (0.031) settles around the average of (0.027) among similar stocks. P/S Ratio (5.754) is also within normal values, averaging (3.197).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. KO’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
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General Information
a manufacturer of non-alcoholic beverages
Industry BeveragesNonAlcoholic