Earnings Beat: The Coca-Cola Company Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models

As you might know, The Coca-Cola Company (NYSE:KO) recently reported its quarterly numbers. Revenues were US$11b, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of US$0.77 were also better than expected, beating analyst predictions by 10%. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Coca-Cola after the latest results.

Following the latest results, Coca-Cola's 20 analysts are now forecasting revenues of US$48.1b in 2025. This would be a reasonable 2.6% improvement in revenue compared to the last 12 months. Per-share earnings are expected to ascend 16% to US$2.90. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$48.0b and earnings per share (EPS) of US$2.86 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

Check out our latest analysis for Coca-Cola

There were no changes to revenue or earnings estimates or the price target of US$77.36, suggesting that the company has met expectations in its recent result. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Coca-Cola at US$86.00 per share, while the most bearish prices it at US$59.60. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Coca-Cola shareholders.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's pretty clear that there is an expectation that Coca-Cola's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 3.5% growth on an annualised basis. This is compared to a historical growth rate of 7.4% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 4.5% annually. Factoring in the forecast slowdown in growth, it seems obvious that Coca-Cola is also expected to grow slower than other industry participants.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Coca-Cola's revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$77.36, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Coca-Cola. Long-term earnings power is much more important than next year's profits. We have forecasts for Coca-Cola going out to 2027, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 4 warning signs for Coca-Cola you should be aware of, and 2 of them are a bit concerning.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.