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After seeing PepsiCo Inc. (NYSE: PEP) beat analyst estimates earlier this week for its third quarter, there are going to be some big expectations for its main rival, Coca Cola Co. (NYSE: KO) when it reports its third quarter numbers next Wednesday.The stock has been impressing analysts at Citigroup lately. Just yesterday the broker lifted its price target on the stock to $67 a share (the stock is currently trading at $57.50), citing improved fundamentals in its Japanese businesses. The broker currently has a buy rating on the company.
Analysts are expecting the soft drink giant to come through with earnings of 68 cents per share for its most recent quarter, and based on the company's solid earnings history, I would not bet against it this time around. The company last reported earnings back on July 17, posting EPS of 85 cents and easily beating Q2 analysts' estimates by 3 cents. In fact, if you look back at the company's history you will find that it has beat estimates for each of its last seventeen quarters. That's a pretty nice run.
My fellow BloggingStocks writer Jim Cramer mentioned Coca Cola late last month as a stock that should be able to benefit from a weak dollar and kill its estimates.
We will find out for ourselves just how good the company performed last quarter before the market opens next Wednesday. Once the numbers are in I will be sure to post them here.
What do you expect? Will Coca Cola continue its impressive earnings run? Or are you expecting to see the company fizzle out this time around?
Michael Fowlkes has worked as a stock trader for seven years and spent the last two years working as an analyst for the online investment advisory service Investor's Observer
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Reader Comments (Page 1 of 1)
10-12-2007 @ 3:26PM
W Jacoby said...
I expect KO to beat by 1-3 cents...on the strength of currency exchange rates. Merely meeting the .68 estimate will be viewed as a disappointment.
10-12-2007 @ 6:12PM
Anaun said...
17 quarters in a row? Pretty good if you ask me. Like Pepsi, a weak dollar and strong foreign sales should really help Coke, not mention the booming bottled water business. Of course, experience is also good and it doesn't hurt when you have one of the most experienced BODs in the business world http://www.newsvisual.com/newsvisual/2007/10/coca-cola-has-c.html