Can Coca-Cola Stock Get a Boost from 4Q17 Results?



Upcoming results

Coca-Cola (KO) is set to announce its 4Q17 results on February 16, 2018. The soda giant’s stock has fallen 4.2% YTD (year-to-date) as of February 12, 2018. Coca-Cola exceeded analysts’ revenue and earnings expectations in 3Q17. However, its revenue continued to decline that quarter, reflecting weak volumes and the impact of structural changes related mainly to the refranchising of its bottling operations.

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Peer stocks

As of February 12, 2018, the stock of Coca-Cola’s closest rival PepsiCo (PEP) has fallen 6.7% since the start of the year. The stock prices of Dr Pepper Snapple (DPS) and Monster Beverage (MNST) have risen 20.3% and 1.2%, respectively, YTD. Dr Pepper Snapple, the third-largest soda maker in the United States, benefited from news of its merger with Keurig Green Mountain. The merger is expected to intensify competition in the nonalcoholic beverage space.

As of February 12, 2018, the S&P 500 Index (SPX-INDEX) has fallen 0.7% on a YTD basis.

Fourth-quarter expectations

Analysts expect Coca-Cola’s 4Q17 revenue to decline on a year-over-year basis. However, its adjusted EPS (earnings per share) is expected to rise. In this series, we’ll look at the factors that are expected to impact Coca-Cola’s sales and earnings in its upcoming 4Q17 results. We’ll also look at its valuation and analysts’ recommendations for KO stock.

Let’s take a look at KO’s revenue expectations in the next part.


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