From having previously delivered earnings of 72 cents per share and a revenue of $841.6 million during its fiscal fourth-quarter earnings results, analysts are now expecting the company to deliver $1.04 per share, 67 cents up from the same quarter a year ago and on a revenue of $8.9 billion compared to the previous year’s $10.3 billion in revenue. Coca-Cola earnings are currently projected to grow by 73% year over year to $9.97 per share.
Meanwhile, Coca-Cola shares recently recorded a new 52-week high on Monday after hitting $210.89 before share closed lower at $209.10 from opening at $206.02 recording a rise of 2.05%. Coca-Cola’s market capitalization currently stands at $1.95 billion.
Announcements To Watch Out
Following the company’s decision to focus on the more profitable side of its business which is its bottling operations, investors are awaiting more updates on Coca-Cola’s investment and restructuring plans most especially with its U.S. bottling operations that
Meanwhile, Coca-Cola current operations chief James Quincy is set to succeed Muhtar Kent as the Chief executive this coming May 1. Quincey has previously announced that he currently has plans to cut corporate staff but has not specified on how many. Investors are hoping to hear more details regarding these layoffs and more information to how the company will expand its cost-cutting efforts to reach an annual savings of $3 billion before 2019. Quincey has also announced back in February during an analyst conference that he plans on reducing Coca-Cola’s ‘sugar footprint and the introduction of a new compensation system that aims to encourage and support research, development, and innovation.
Coca-Cola Amatil Weak Sales
Although collective analysts estimates are currently mixed, the Coca-Cola Amatil division is at risk of delivering a much weaker growth as it reported a weak trading last Friday.
In the midst of investor concerns over consumers who are growing increasingly health-conscious and has switched to more alternatives, the company’s bottled water operations have also hit a snag recently.
This has led analysts to cut back their target prices on the Coca-Cola stock with half of the previous confidence on the stock rebounding while those who have remained optimistic has noted that the company will likely be facing more pressure throughout the first two-quarters of the year and during fiscal 2018.