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Coca-Cola's Earnings Outlook: A Mixed Bag for Investors

Strategic Insights

— 2 min read

Coca-Cola, one of the world's leading beverage companies, is set to release its 2015 first quarter earnings results on April 22, before the market opens. Analysts expect the company to report earnings of 43 cents per share on revenue of $10.65 billion, a slight decline from the same quarter last year when Coca-Cola earned 44 cents per share on revenue of $10.58 billion. Despite the expected decline, the company's dividend payout of $1.32 per share, which equates to a current yield of 3.2%, makes it an attractive option for investors.

Key Takeaways:

  • Coca-Cola is expected to report earnings of 43 cents per share on revenue of $10.65 billion in the first quarter of 2015, a decline from the same quarter last year.
  • The company's dividend payout of $1.32 per share, with a current yield of 3.2%, makes it an attractive option for investors.
  • Skip Raschke, a member of TheStreet's Options Profits Team, suggests that Coca-Cola's stock price may decline if the reaction to its upcoming earnings report causes more selling than buying.
  • Raschke's preferred trade tactic for Coca-Cola is the bearishly-biased, at-the-money vertical put spread, expiring in August.
  • TheStreet Ratings team rates Coca-Cola as a Buy with a ratings score of B-, citing the company's expanding profit margins, reasonable valuation levels, and notable return on equity.
  • Coca-Cola's 52-week stock price trading range is $38 on the low end and $45 on the high end, with a bearishly trending one-year stochastic and RSI.

Statistics:

  • Coca-Cola is expected to report earnings of 43 cents per share in the first quarter of 2015, a decline of $0.02 from the same quarter last year.
  • The company's revenue is expected to be $10.65 billion in the first quarter of 2015, a slight increase from the same quarter last year.
  • Coca-Cola's dividend payout is $1.32 per share, with a current yield of 3.2%.
  • The company's 52-week stock price trading range is $38 on the low end and $45 on the high end.

Sources:

  • TheStreet: http://www.thestreet.com
  • Quote: http://www.thestreet.com/options-profits/quote/KO
  • OptionsProfits.com: http://www.thestreet.com/options-profits/options-profits/article/hot-topics/skip-raschke-intermediate-trade-ko-losing-its-fizz
  • TheStreet Ratings: http://secure2.thestreet.com/cap/prm.do?OID=023499&ticker=KO

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