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Here's What to Expect From Coca-Cola (KO) in Q1 Earnings
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The Coca-Cola Company (KO - Free Report) is expected to register top-line growth when it reports first-quarter 2023 numbers on Apr 24, before the opening bell. The Zacks Consensus Estimate for the company’s first-quarter revenues is pegged at $10.9 billion, suggesting 3.5% growth from the prior-year quarter’s reported figure.
For first-quarter earnings, the consensus mark is pegged at 65 cents, suggesting 1.6% growth from the year-ago quarter’s reported figure. The consensus mark has moved up by a penny in the past 30 days.
We expect the company’s first-quarter total revenues to increase 1.8% year over year to $10,681.6 million and the bottom line to improve 0.5% to 64 cents per share.
In the last reported quarter, the leading soft-drink behemoth’s earnings were in line with the Zacks Consensus Estimate. Its bottom line beat the Zacks Consensus Estimate by 5.7%, on average, in the trailing four quarters.
Coca-Cola’s performances in recent quarters have been benefiting from strategic transformation and ongoing recovery around the world. The company’s fourth-quarter performance is expected to have benefited from revenue growth across its operating segments, aided by an improved price/mix and an increase in concentrate sales. Underlying share gains in both at-home and away-from-home channels are also expected to have bolstered the performance.
The company’s volumes in the first quarter are expected to have benefited from the ongoing recovery in markets. Category-wise, volume has been benefiting from growth in trademark Coca-Cola; sparkling flavors; the nutrition, juice, dairy and plant-based beverages; and hydration, sports, coffee and tea categories.
Coca-Cola’s first-quarter results are likely to reflect gains from innovations and accelerating digital investments. The company has been witnessing a splurge in e-commerce, with the growth rate of the channel doubling in many countries. KO has been accelerating investments to build strong digital capabilities. The company has been consistently strengthening consumer connections and piloting various digital-enabled initiatives through fulfillment methods to capture the online demand, which are likely to have boosted first-quarter sales.
However, Coca-Cola has been witnessing pressures from higher supply-chain costs, including rising commodity input costs and transportation expenses. The pressures from input cost inflation and other costs are likely to have hurt the company’s performance in the first quarter.
Coca-Cola has been investing in its markets and brands to support sales growth with higher spending on consumer-facing activities. This has led to increased marketing investments in the past few quarters. Rising marketing spending, and growth in short-term incentives and stock-based compensation are expected to have led to increased selling, general and administrative expenses in the first quarter.
On the last reported quarter’s earnings call, the company expected adverse currency rates to hurt the top and bottom lines in the first quarter. It expects a currency headwind of 5-6% on comparable revenues and 6-7% on comparable earnings per share for the first quarter. Additionally, revenues are expected to reflect a 1% negative impact of acquisitions.
Zacks Model
Our proven model does not conclusively predict an earnings beat for Coca-Cola this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Coca-Cola has a Zacks Rank #2 and an Earnings ESP of -2.41%.
Stocks Likely to Beat on Earnings
Here are some companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this quarter:
Kimberly-Clark (KMB - Free Report) presently has an Earnings ESP of +3.25% and a Zacks Rank #2. The company is expected to register top and bottom-line declines when it reports its first-quarter 2023 numbers. The Zacks Consensus Estimate for KMB’s quarterly revenues is pegged at $5.1 billion, which suggests a decline of 0.4% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for Kimberly-Clark’s quarterly earnings has moved up by a penny in the past seven days to $1.32 per share. However, the consensus estimate suggests a 2.2% decline from the year-ago reported number. KMB has delivered an earnings beat of 1.4%, on average, in the trailing four quarters.
Archer Daniels Midland (ADM - Free Report) currently has an Earnings ESP of +2.99% and a Zacks Rank #3. ADM is anticipated to register top and bottom-line declines when it reports first-quarter 2023 results. The Zacks Consensus Estimate for Archer Daniels’ quarterly revenues is pegged at $23.5 billion, indicating a decline of 0.7% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Archer Daniels’ bottom line has moved down by a penny in the past seven days to $1.71 per share. The consensus estimate suggests a decline of 10% from the prior-year quarter’s reported figure. ADM has delivered an earnings beat of 28.1%, on average, in the trailing four quarters.
Philip Morris International (PM - Free Report) has an Earnings ESP of +1.86% and a Zacks Rank #3 at present. PM is likely to register top-line growth when it releases first-quarter 2023 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $8.1 billion, which suggests growth of 4.3% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Philip Morris’ quarterly earnings has been unchanged in the past 30 days at $1.33 per share, suggesting a decline of 14.7% from the year-ago quarter’s reported number. PM has delivered a negative earnings surprise of 10.9%, on average, in the trailing four quarters.
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Here's What to Expect From Coca-Cola (KO) in Q1 Earnings
The Coca-Cola Company (KO - Free Report) is expected to register top-line growth when it reports first-quarter 2023 numbers on Apr 24, before the opening bell. The Zacks Consensus Estimate for the company’s first-quarter revenues is pegged at $10.9 billion, suggesting 3.5% growth from the prior-year quarter’s reported figure.
For first-quarter earnings, the consensus mark is pegged at 65 cents, suggesting 1.6% growth from the year-ago quarter’s reported figure. The consensus mark has moved up by a penny in the past 30 days.
We expect the company’s first-quarter total revenues to increase 1.8% year over year to $10,681.6 million and the bottom line to improve 0.5% to 64 cents per share.
In the last reported quarter, the leading soft-drink behemoth’s earnings were in line with the Zacks Consensus Estimate. Its bottom line beat the Zacks Consensus Estimate by 5.7%, on average, in the trailing four quarters.
CocaCola Company (The) Price and EPS Surprise
CocaCola Company (The) price-eps-surprise | CocaCola Company (The) Quote
Key Points to Note
Coca-Cola’s performances in recent quarters have been benefiting from strategic transformation and ongoing recovery around the world. The company’s fourth-quarter performance is expected to have benefited from revenue growth across its operating segments, aided by an improved price/mix and an increase in concentrate sales. Underlying share gains in both at-home and away-from-home channels are also expected to have bolstered the performance.
The company’s volumes in the first quarter are expected to have benefited from the ongoing recovery in markets. Category-wise, volume has been benefiting from growth in trademark Coca-Cola; sparkling flavors; the nutrition, juice, dairy and plant-based beverages; and hydration, sports, coffee and tea categories.
Coca-Cola’s first-quarter results are likely to reflect gains from innovations and accelerating digital investments. The company has been witnessing a splurge in e-commerce, with the growth rate of the channel doubling in many countries. KO has been accelerating investments to build strong digital capabilities. The company has been consistently strengthening consumer connections and piloting various digital-enabled initiatives through fulfillment methods to capture the online demand, which are likely to have boosted first-quarter sales.
However, Coca-Cola has been witnessing pressures from higher supply-chain costs, including rising commodity input costs and transportation expenses. The pressures from input cost inflation and other costs are likely to have hurt the company’s performance in the first quarter.
Coca-Cola has been investing in its markets and brands to support sales growth with higher spending on consumer-facing activities. This has led to increased marketing investments in the past few quarters. Rising marketing spending, and growth in short-term incentives and stock-based compensation are expected to have led to increased selling, general and administrative expenses in the first quarter.
On the last reported quarter’s earnings call, the company expected adverse currency rates to hurt the top and bottom lines in the first quarter. It expects a currency headwind of 5-6% on comparable revenues and 6-7% on comparable earnings per share for the first quarter. Additionally, revenues are expected to reflect a 1% negative impact of acquisitions.
Zacks Model
Our proven model does not conclusively predict an earnings beat for Coca-Cola this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Coca-Cola has a Zacks Rank #2 and an Earnings ESP of -2.41%.
Stocks Likely to Beat on Earnings
Here are some companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this quarter:
Kimberly-Clark (KMB - Free Report) presently has an Earnings ESP of +3.25% and a Zacks Rank #2. The company is expected to register top and bottom-line declines when it reports its first-quarter 2023 numbers. The Zacks Consensus Estimate for KMB’s quarterly revenues is pegged at $5.1 billion, which suggests a decline of 0.4% from the prior-year quarter’s reported figure.
You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Kimberly-Clark’s quarterly earnings has moved up by a penny in the past seven days to $1.32 per share. However, the consensus estimate suggests a 2.2% decline from the year-ago reported number. KMB has delivered an earnings beat of 1.4%, on average, in the trailing four quarters.
Archer Daniels Midland (ADM - Free Report) currently has an Earnings ESP of +2.99% and a Zacks Rank #3. ADM is anticipated to register top and bottom-line declines when it reports first-quarter 2023 results. The Zacks Consensus Estimate for Archer Daniels’ quarterly revenues is pegged at $23.5 billion, indicating a decline of 0.7% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Archer Daniels’ bottom line has moved down by a penny in the past seven days to $1.71 per share. The consensus estimate suggests a decline of 10% from the prior-year quarter’s reported figure. ADM has delivered an earnings beat of 28.1%, on average, in the trailing four quarters.
Philip Morris International (PM - Free Report) has an Earnings ESP of +1.86% and a Zacks Rank #3 at present. PM is likely to register top-line growth when it releases first-quarter 2023 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $8.1 billion, which suggests growth of 4.3% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Philip Morris’ quarterly earnings has been unchanged in the past 30 days at $1.33 per share, suggesting a decline of 14.7% from the year-ago quarter’s reported number. PM has delivered a negative earnings surprise of 10.9%, on average, in the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.