Coca-Cola (KO) Q2 Earnings Report Preview: What To Look For

Beverage company Coca-Cola (NYSE:KO) will be announcing earnings results tomorrow before the bell. Here's what to look for.

Coca-Cola beat analysts' revenue expectations by 2.4% last quarter, reporting revenues of $11.23 billion, up 2.5% year on year. It was a very strong quarter for the company, with an impressive beat of analysts' organic revenue growth estimates and a decent beat of analysts' gross margin estimates.

Is Coca-Cola a buy or sell going into earnings? Read our full analysis here, it's free.

This quarter, analysts are expecting Coca-Cola's revenue to decline 1.8% year on year to $11.75 billion, a reversal from the 5.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.81 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Coca-Cola has a history of exceeding Wall Street's expectations, beating revenue estimates every single time over the past two years by 3.5% on average.

Looking at Coca-Cola's peers in the consumer staples segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Constellation Brands delivered year-on-year revenue growth of 5.8%, meeting analysts' expectations, and WD-40 reported revenues up 9.4%, topping estimates by 6.3%. Constellation Brands's stock price was unchanged after the resultswhile WD-40 was up 4%.

Read our full analysis of Constellation Brands's results here and WD-40's results here.

Investors in the consumer staples segment have had steady hands going into earnings, with share prices flat over the last month. Coca-Cola is up 2.1% during the same time and is heading into earnings with an average analyst price target of $68.5 (compared to the current share price of $65.3).

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