Earnings Beat: The Coca-Cola Company Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models

As you might know, The Coca-Cola Company (NYSE:KO) just kicked off its latest quarterly results with some very strong numbers. Results were good overall, with revenues beating analyst predictions by 2.4% to hit US$11b. Statutory earnings per share (EPS) came in at US$0.74, some 8.5% above whatthe analysts had expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Coca-Cola

Taking into account the latest results, Coca-Cola's 19 analysts currently expect revenues in 2024 to be US$45.7b, approximately in line with the last 12 months. Per-share earnings are expected to swell 10% to US$2.76. In the lead-up to this report, the analysts had been modelling revenues of US$45.7b and earnings per share (EPS) of US$2.74 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$66.96. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Coca-Cola at US$74.00 per share, while the most bearish prices it at US$60.00. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that revenue is expected to reverse, with a forecast 1.1% annualised decline to the end of 2024. That is a notable change from historical growth of 6.5% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 5.0% annually for the foreseeable future. It's pretty clear that Coca-Cola's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at US$66.96, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Coca-Cola going out to 2026, and you can see them free on our platform here..

Even so, be aware that Coca-Cola is showing 2 warning signs in our investment analysis , you should know about...

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.