The Coca-Cola Company (KO), headquartered in Atlanta, Georgia, is a beverage company that manufactures, markets, and sells various nonalcoholic beverages worldwide. With a market cap of $309.6 billion, the company also distributes and markets juice and juice-drink products to retailers and wholesalers worldwide. The world’s largest nonalcoholic beverage company is expected to announce its fiscal third-quarter earnings for 2024 before the market opens on Wednesday, Oct. 23.

Ahead of the event, analysts expect KO to report a profit of $0.75 per share on a diluted basis, up 1.4% from $0.74 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports. 

For the full year, analysts expect KO to report EPS of $2.85, up 6% from $2.69 in fiscal 2023. Its EPS is expected to rise 6.3% year over year to $3.03 in fiscal 2025. 

KO stock has outperformed the S&P 500’s ($SPX) 19.7% gains on a YTD basis, with shares up 21.7% during this period. Similarly, it outshined the Consumer Staples Select Sector SPDR Fund’s (XLP) 14.8% gains over the same time frame.

Coca-Cola's strong performance can be attributed to its strategic decision to reduce its brand count and launch new beverages in various sizes and bottle types. Despite economic challenges, the company has managed to increase revenue and profits by raising prices and leveraging its distribution channels effectively. By focusing on global brands and acquisitions, Coca-Cola has continued to grow and maintain a competitive edge in the market. Additionally, the company's use of artificial intelligence for pricing adjustments has driven revenue growth and improved operational efficiency.

On Jul. 23, KO shares closed up marginally after reporting its Q2 results. Its adjusted EPS of $0.84 beat Wall Street expectations of $0.80. The company’s revenue was $12.4 billion, topping Wall Street forecasts of $11.9 billion.

Analysts’ consensus opinion on KO stock is bullish, with a “Strong Buy” rating overall. Out of 21 analysts covering the stock, 15 advise a “Strong Buy” rating, one suggests a “Moderate Buy” rating, and five give a “Hold.” While KO currently trades above its mean price target of $71.65, the Street-high price target of $85 suggests an upside potential of 18.5%. 

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