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's RSI Indicator climbs out of oversold territory
The RSI Indicator for KO moved out of oversold territory on November 20, 2024. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 26 similar instances when the indicator left oversold territory. In of the 26 cases the stock moved higher. This puts the odds of a move higher at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator demonstrated that the ticker has stayed in the oversold zone for 1 day, which means it's wise to expect a price bounce in the near future.
The Moving Average Convergence Divergence (MACD) for KO just turned positive on November 21, 2024. Looking at past instances where KO's MACD turned positive, the stock continued to rise in of 44 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where KO advanced for three days, in of 348 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 December 06, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on KO as a result. In of 81 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent 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 November 26, 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 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 (10.081) 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 Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 73, placing this stock slightly better than average.
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