Coca-Cola (KO, $59.40) tops Q3 earnings expectations; raises full-year outlook
Coca-Cola posted its third quarter earnings that surpassed analysts’ expectations. The beverage maker also boosted its full-year outlook, on expectations of its strategy of hiking prices coupled with more affordable options to bolster sales growth.
Coca-Cola’s adjusted earnings for the third quarter came in at 69 cents, well above the 64 cents expected by analysts (based on Refinitiv poll).
Revenue (adjusted) rose +10% from the year-ago quarter to $11.05 billion, also exceeding the $10.52 billion expected. Unit case volume (which excludes the impact of currency and price changes) was up +4%.
Looking ahead, Coke expects adjusted earnings per share growth of 6% to 7% for 2022,, up from its prior forecast of 5% to 6%. The company now projects its organic revenue growth in the range of 14% to 15%, up from its prior forecast of 12% to 13%.
For the fourth quarter, the company is anticipating foreign currency to affect its adjusted net sales by 8% and adjusted earnings per share by 9%, including the impact of hedged positions.
According to Coke CEO James Quincey, challenging economic conditions will likely persist for the next six to 12 months, and that the company’s product innovation next year will focus more on packaging towards creating more affordable options for consumers (as reported in CNBC).
KO in downward trend: price dove below 50-day moving average on May 22, 2023
KO moved below its 50-day moving average on May 22, 2023 date and that indicates a change from an upward trend to a downward trend. In of 36 similar past instances, the stock price decreased further within the following month. The odds of a continued downward trend are .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on May 12, 2023. You may want to consider selling the stock, shorting the stock, or exploring put options on KO as a result. In of 93 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The 10-day moving average for KO crossed bearishly below the 50-day moving average on May 25, 2023. This indicates that the trend has shifted lower and could be considered a sell signal. In of 17 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 June 02, 2023. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Bullish Trend Analysis
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where KO's RSI Indicator exited the oversold zone, of 23 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 10 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where KO advanced for three days, in of 347 cases, the price rose further within the following month. The odds of a continued upward trend are .
KO may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Fundamental Analysis (Ratings)
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 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 Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued 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 (10.493) is normal, around the industry mean (59.034). P/E Ratio (26.954) is within average values for comparable stocks, (49.645). Projected Growth (PEG Ratio) (3.332) is also within normal values, averaging (5.359). Dividend Yield (0.029) settles around the average of (0.030) among similar stocks. P/S Ratio (6.112) is also within normal values, averaging (2.849).
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.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
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Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
a manufacturer of non-alcoholic beverages
Industry BeveragesNonAlcoholic
KO and
Correlation & Price change
A.I.dvisor indicates that over the last year, KO has been closely correlated with PEP. These tickers have moved in lockstep 81% of the time. This A.I.-generated data suggests there is a high statistical probability that if KO jumps, then PEP could also see price increases.
