Beverage giant Coca-Cola (NYSE:KO) is set to report third-quarter financial results before the market opens Wednesday, Oct. 23.
Could the company's earnings highlight easing inflation and growth in international markets?
Earnings Estimates: Analysts expect Coca-Cola to report third-quarter revenue of $11.60 billion, compared to revenue of $11.95 billion in last year's third quarter, according to data from Benzinga Pro.
The company has beaten analyst revenue estimates in more than 10 straight quarters.
Analysts expect the company to report third-quarter earnings per share of 74 cents per share, in line with last year's third-quarter total of 74 cents. The company has beaten analyst estimates for earnings per share in eight of the past 10 quarters, meeting expectations in the other two quarters. Earnings beat analyst estimates in the past two straight quarters.
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Key Items to Watch: Coca-Cola's earnings report comes weeks after beverage rival PepsiCo Inc (NASDAQ:PEP) reported third-quarter results with an earnings per share beat and revenue miss.
Pepsi is more diversified outside of beverages in snacks and food, which could make Coca-Cola's report interesting for the beverage sector after Pepsi lowered full-year revenue guidance.
Coca-Cola raised earnings per share guidance and revenue guidance after second-quarter results. Keeping guidance intact or raising it again could have Coca-Cola more preferentially viewed to its beverage rival.
Coca-Cola stock is up 16% year-to-date in 2024, outperforming Pepsi, which is up less than 1% in 2024, but both stocks lag the overall S&P 500, which is up over 23% on the year.
Inflation concerns and weight-loss drugs leading to cutbacks on carbonated beverages are among the headwinds Coca-Cola and Pepsi faced. With inflation easing according to reports, commentary from the beverage company on consumer demand and trends could be key for how the stock reacts Wednesday after the report.
One of the keys to Coca-Cola's earnings strength in the second quarter was the Europe, Middle East and Africa region, which had organic revenue up 30%, compared to a 10% increase in North America. Analysts and investors will be looking to see continued strength from Coca-Cola in international markets.
Other items to watch in the report include the impact from a sponsorship of the 2024 Summer Olympics and how new partnerships like one with Oreo are helping sales momentum.
KO Price Action: Coca-Cola stock is up 0.14% to $69.55 on Tuesday versus a 52-week trading range of $54.04 to $73.53.
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