Here's What Analysts Are Forecasting For The Coca-Cola Company (NYSE:KO) After Its Annual Results

As you might know, The Coca-Cola Company (NYSE:KO) recently reported its annual numbers. Results were roughly in line with estimates, with revenues of US$46b and statutory earnings per share of US$2.47. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Coca-Cola after the latest results.

View our latest analysis for Coca-Cola

Taking into account the latest results, Coca-Cola's 18 analysts currently expect revenues in 2024 to be US$45.8b, approximately in line with the last 12 months. Statutory earnings per share are predicted to expand 10% to US$2.74. Before this earnings report, the analysts had been forecasting revenues of US$47.0b and earnings per share (EPS) of US$2.72 in 2024. So it looks like the analysts have become a bit less optimistic after the latest results announcement, with revenues expected to fall even as the company is supposed to maintain EPS.

The consensus has reconfirmed its price target of US$65.93, showing that the analysts don't expect weaker revenue expectations next year to have a material impact on Coca-Cola's market value. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Coca-Cola, with the most bullish analyst valuing it at US$74.00 and the most bearish at US$60.00 per share. This is a very narrow spread of estimates, implying either that Coca-Cola is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Coca-Cola's past performance and to peers in the same industry. We would highlight that Coca-Cola's revenue growth is expected to slow, with the forecast 0.1% annualised growth rate until the end of 2024 being well below the historical 6.1% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 4.9% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Coca-Cola.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. Even so, earnings are more important to the intrinsic value of the business. The consensus price target held steady at US$65.93, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. 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..

However, before you get too enthused, we've discovered 1 warning sign for Coca-Cola that you should be aware of.

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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.