Coca-Cola Company (Coke) is expected to report for the fiscal Quarter ending Sep 2020 earnings on 22nd October 2020 before market open. Investors are hopeful that the company’s 3rd quarter earnings will repeat a better-than-expected result as lockdown restrictions ease. Coke earning result only missed expectations only once in the past five years, in early 2017.
Coca-Cola (Coke) has been knocked hard by the Covid-19 pandemics, as lockdown restrictions severely impacted its business comes from people buying its products at sporting events, cinema, and restaurants. The company warned that the pandemic-related lockdowns would hurt consumer consumption, and it duly delivered the predictable disappointing results in the spring. In its 2nd quarter reports, CEO James Quincey said the company believes the second quarter will likely be the most challenging of the year. Coca-Cola reported its largest decline in quarterly revenue in at least 30 years, yet it still beat out Q2 earnings estimates.
Analyst forecasting the consensus Earning Per Share (EPS) forecast for the quarter is $0.45 as the beverage giant makes recent moves to streamline its brand offerings. (Source: Zacks Investment Research). The reported EPS for the same quarter last year was $0.56. The revenue is expected at $8.36 billion, down from $9.51 billion from same quarter in 2019. Majority of the analysts (17 out of 21 analysts) tracked by FactSet have a Buy rating or the equivalent on Coke, with the remaining 4 analysts rating it at Hold. There are no bearish calls on the Coke stock. The median average analyst price target is $55.00, with the high estimate at $61.00 and low estimate of $49.00.
Technically, the weekly chart remains sideway since September in between $48.00-$51.00. It traded in between the 50%-61.8% Fibonacci retracement from the swing high-low of March 2020. 50-weekly Moving averages currently sit right at $50.00 (strong support) and 200-week Moving Averages slightly low at $47.83. The daily chart also shown a sideways movement as the uncertainty of market sentiment remains the main theme. An initial sign of golden cross is observed as 50-day moving averages crossed 200-day moving averages.
Coke will report before the New York cash market open October 22, with all eyes on those key revenue numbers.
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Tunku Ishak Al-Irsyad
Market Analyst
HF Education Office Malaysia
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