Coca-Cola Earnings Release Summary
Overview
Coca-Cola (ticker: KO) is scheduled to release its earnings report on Tuesday, coinciding with a significant milestone as the Dow Jones Industrial Average has surpassed the 50,000 mark for the first time. This event marks a notable recovery for the index, which had previously experienced a three-week losing streak.
Stock Performance
KO shares have experienced a substantial increase, rising from approximately $67.00 to $79.00 over the past five weeks. This surge is attributed to a rotation of investments from technology stocks to consumer staples, with Coca-Cola benefiting from this trend. Year-to-date, KO shares have gained 13% in value.
Market Context
Coca-Cola is one of the 30 largest industrial stocks in the Dow Jones index. The company is set to report earnings before the U.S. market opens, following a positive earnings report from its competitor, PepsiCo, which exceeded expectations and has also seen a rise in its stock price.
Leadership Changes
In a significant development, Coca-Cola has announced a transition in leadership, with COO Henrique Braun set to take over as CEO from James Quincey, who has held the position for nine years. This change comes as the company prepares for its upcoming earnings report.
Earnings Expectations
Analysts expect Coca-Cola's revenue for the fourth quarter to reach $12 billion, reflecting a 4% increase year-over-year. Adjusted earnings per share are projected to rise by 2 cents to $0.57. The company is also anticipated to announce its 64th consecutive dividend increase this month, continuing its long-standing tradition of raising dividends for over 63 years.
Dividend Insights
Despite the company's impressive track record of dividend increases, recent years have seen these increases struggle to keep pace with inflation. However, improved earnings, higher operating margins, and share buybacks could lead to the largest dividend increase since 2007. Coca-Cola is among a select group of only 56 publicly traded companies globally that have increased dividends for more than 50 years.