Coca-Cola (KO) Earnings Expected to Grow: Should You Buy?

Core Viewpoint - Wall Street anticipates a year-over-year increase in earnings for Coca-Cola despite lower revenues, with a focus on how actual results will compare to estimates [1][2]. Earnings Expectations - Coca-Cola is expected to report quarterly earnings of $0.51 per share, reflecting a +4.1% change year-over-year, while revenues are projected to be $10.69 billion, down 1.5% from the previous year [3]. - The earnings report is scheduled for release on February 11, 2025, and could influence stock movement based on whether results exceed or fall short of expectations [2]. Estimate Revisions - The consensus EPS estimate has been revised 1.71% lower in the last 30 days, indicating a reassessment by analysts [4]. - A positive Earnings ESP of +0.35% suggests analysts have recently become more optimistic about Coca-Cola's earnings prospects [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive reading is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [8]. - Coca-Cola has a Zacks Rank of 3, which, along with the positive Earnings ESP, suggests a likelihood of beating the consensus EPS estimate [11]. Historical Performance - Coca-Cola has consistently beaten consensus EPS estimates, achieving this in the last four quarters [13]. - In the last reported quarter, Coca-Cola exceeded expectations by delivering earnings of $0.77 per share against an expected $0.74, resulting in a surprise of +4.05% [12]. Conclusion - While Coca-Cola is positioned as a compelling earnings-beat candidate, other factors may also influence stock performance beyond just the earnings report [14][16].