Will Coca-Cola (KO) Beat Estimates Again in Its Next Earnings Report?

Core Viewpoint - Coca-Cola is well-positioned to continue its earnings-beat streak in upcoming reports, supported by a history of positive earnings surprises and favorable analyst estimates [1][3]. Earnings Performance - For the most recent quarter, Coca-Cola reported earnings of $0.77 per share, exceeding the expected $0.74 per share, resulting in a surprise of 4.05% [2]. - In the previous quarter, the company reported $0.84 per share against an expectation of $0.80 per share, achieving a surprise of 5% [2]. Analyst Sentiment - Estimates for Coca-Cola have been trending higher, reflecting the company's earnings surprise history, which has led to a positive Zacks Earnings ESP of +0.51% [3][6]. - The positive Earnings ESP, combined with a Zacks Rank of 3 (Hold), indicates a strong possibility of another earnings beat in the near future [6]. Predictive Metrics - Research indicates that stocks with a positive Earnings ESP and a Zacks Rank of 3 or better have a nearly 70% chance of producing a positive surprise [4]. - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, suggesting that recent analyst revisions may provide more accurate predictions [5]. Importance of Earnings ESP - The Earnings ESP metric is crucial for assessing the likelihood of a company beating earnings estimates, as a negative value can reduce predictive power but does not necessarily indicate an earnings miss [6][7].