The Coca-Cola Company (KO) is scheduled to report Q4-2010 results on Wednesday, February 9, 2011. In the last four quarters ending June 2010, the company's reported eps met/exceeded analysts' consensus estimates by margins in the range of 0% and 8.11%.
The Coca-Cola Company is the owner and marketer of nonalcoholic beverage brands. It also manufactures, distributes and markets concentrates and syrups used to produce nonalcoholic beverages. The Company owns or licenses and markets more than 500 nonalcoholic beverage brands, primarily sparkling beverages but also a variety of still beverages, such as waters, enhanced waters, juices and juice drinks, ready-to-drink teas and coffees, and energy and sports drinks. It also manufactures, or authorizes bottling partners to manufacture, fountain syrups, which it sells to fountain retailers, such as restaurants and convenience stores, which use the fountain syrups to produce finished beverages for immediate consumption, or to fountain wholesalers or bottlers, which in turn sell and distribute the fountain syrups to fountain retailers. In addition, the Company manufactures certain finished beverages, such as juices and juice drinks and water products.
The company reported a net income of $2,055 million, or $0.89 per diluted share, for the third quarter ended October 1, 2010, compared to $1,896 million, or $0.82 per diluted share, for the third quarter of 2009. Revenue for the third quarter of 2010 was $8,426 million, compared to $8,044 million for the third quarter of 2009. Net income for the nine months of 2010 was $6,038 million, or $2.62 per diluted share, compared to $5,281 million, or $2.28 per diluted share, for the nine months of 2009. Revenue for the nine months of 2010 was $24,625 million, compared to $23,480 million for the nine months ended September 30, 2009.
Analysts' estimates for the fourth quarter range from a low of $0.66 to a high of $0.74, compared to a consensus estimate of $0.72 or year ago eps of $0.66. Analysts' revenue estimates for the fourth quarter 2010 range from a low of $7.61 billion to a high of $10.92 billion, compared to a consensus estimate of $9.75 billion or reported revenue of $7.51 billion in the same quarter a year ago. For the fourth quarter, the consensus EPS forecast has remained the same over the past week at $0.720 and remained the same over the past month at $0.720.
The stock closed Friday at $62.21, compared to 52 week range of $49.47 and $65.88. In the last one year, the closing share price has gained $7.96 or 14.67%. I forecast 2011 earnings loss per share at $3.87, and see 2012's at $4.2. Based on these estimates, I set a target price of $70. My forecast takes into account the impact of expected recovery in North America, significant opportunities to cut costs and improve efficiencies on the acquisition of North American bottling operations of Coca-Cola Enterprises.