Coca-Cola Earnings Preview: Will Q3 Report Help Sustain Stock's Bullish Momentum?
Coca-Cola (NYSE:KO), the world's most recognizable beverage brand, is poised to release its 3rd-quarter 2023 earnings on October 24th, just before the market open. As the financial results draw near, investors are eager to see if the numbers will turn out to be the catalyst needed for KO stock to recover from its +15% decline since the last week of July.
Recent signs of hope emerged as the stock experienced a 3% uptick in value last week. Investors appear to have found value at levels comparable to those seen at the same time last year, hovering around the $52 range just before the earnings announcement. This indicates that with the release of the last quarter's results, shares may experience increased volatility.
Now, let's delve into what investors can anticipate in this upcoming report and whether the stock presents an enticing buying opportunity at current levels.
The stock's previous steep and swift decline began shortly after the disclosure of Q2 results. During that quarter, Coca-Cola reported earnings per share (EPS) of $0.78, surpassing InvestingPro's expectations by an impressive 8%. Additionally, the company's revenue for that period stood at $11.96 billion, exceeding expectations by 1.8%.
Despite the continued growth in revenue and profitability, the beverage titan has faced challenges, with most analysts attributing the decline to the growing popularity of weight loss drugs in the United States. The expectation that these drugs, equipped with appetite-suppressing properties, could reduce demand for food and beverages has cast a shadow over KO stock.
Source: InvestingPro
If we look at the 3rd quarter estimates; While 12 analysts revised their estimates downwards, there is a consensus estimate of $0.69 for
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