Coca-Cola Expected to Post Strong Q4 Results Amidst Rivalry with PepsiCo
Key Takeaways:
* Coca-Cola (KO) anticipates another robust quarter, gaining market share over PepsiCo (PEP).
* Analysts forecast Q4 revenue of $10.67 billion and earnings per share of $0.52.
* Street estimates a price/mix increase of 6.71% and a unit case volume decline of 0.21%.
* Despite cautious consumer spending, favorable commodity pricing has driven a 10% increase in organic revenue for the full year.
* Coca-Cola's strong growth performance outshines industry peers amidst global economic headwinds.
Wall Street's Q4 Expectations:
| Metric | Q4 2023 Estimate | Q4 2022 Reported | Change |
|---|---|---|---|
| Revenue | $10.67 billion | $10.85 billion | -1.67% |
| Adjusted EPS | $0.52 | $0.49 | +6.12% |
| Price/Mix Growth | 6.71% | 9.00% | -25.49% |
| Unit Case Volume Growth | -0.21% | 2.00% | -2.21% |
Key Factors to Watch:
* Latin American market performance
* Impact of currency headwinds on earnings growth
* Potential impact of tariffs and inflation on agriculture commodities
* Emerging market sales and new product performance
* Partnerships with fast food chains and Costco
Analyst Commentary:
* Bank of America: "Coca-Cola strikes a balance between volume growth and price."
* UBS: "Coca-Cola's strong organic revenue growth stands out amidst industry challenges."
* CFRA: "Emerging markets and new products will support sales, but foreign currency and product diversification remain risks."
Market Performance:
* Coca-Cola shares up 7% over the past year, outperforming PepsiCo's 16% decline.
* However, Coca-Cola trails behind the S&P 500's 20% gain.