Coca-Cola Q4 Earnings Preview: Can Warren Buffett Favorite Keep Streak Of Revenue Beats Alive?

As the calendar turns to February, investors are eagerly anticipating Coca-Cola's (KO) fourth-quarter earnings report, scheduled for Tuesday, February 11. The beverage giant has a history of beating analyst estimates in recent quarters, and the market will be watching closely to see if it can maintain its streak. With a strong brand, diverse product portfolio, and global presence, Coca-Cola has the potential to continue its impressive run.



Key Metrics and Expectations

Analysts expect Coca-Cola to report fourth-quarter earnings per share (EPS) of 52 cents, up from 49 cents in last year's fourth quarter. Revenue is expected to come in at $10.68 billion, down from $10.85 billion in the same period last year. Despite the slight decline in revenue, analysts are optimistic about the company's prospects, citing its attractive and sustainable growth drivers.



Analyst Views and Price Targets

Several analysts have weighed in on Coca-Cola's prospects, with many expressing bullish sentiments. Piper Sandler analyst Michael Lavery highlighted the North America and Latin America regions as attractive growth drivers, noting that the company has a large percentage of its populations that do not drink commercial beverages, offering an expansion opportunity. Lavery initiated coverage on the stock with an Overweight rating and a $74 price target, later revised down to $73.

Other analysts have also raised their price targets for Coca-Cola stock, reflecting their confidence in the company's growth prospects. RBC Capital raised its price target from $68 to $69, while Jefferies upgraded the stock from Hold to Buy and raised its price target from $69 to $75. JPMorgan maintained its Overweight rating but lowered its price target from $75 to $70, and Barclays maintained its Overweight rating but lowered its price target from $73 to $66.



Warren Buffett's Stake in Coca-Cola

Legendary investor Warren Buffett has long been a fan of Coca-Cola, and Berkshire Hathaway Inc. (BRKBRK) owns a significant stake in the company. With 400 million shares, Coca-Cola is one of the largest holdings in Berkshire Hathaway's portfolio. Buffett first started buying shares of Coca-Cola in 1988, and the stock has since climbed 1,750%. The investment has generated an unrealized gain of $19.4 billion for Berkshire Hathaway, along with billions in dividends.

Buffett's investment in Coca-Cola exemplifies his long-term approach to investing, focusing on fundamentally strong companies with attractive growth prospects. As Coca-Cola reports its fourth-quarter earnings, investors will be watching to see if the company can maintain its streak of revenue beats and continue to deliver strong performance.



In conclusion, Coca-Cola's fourth-quarter earnings report will be closely watched by investors, analysts, and legendary investor Warren Buffett. With a strong brand, diverse product portfolio, and global presence, Coca-Cola has the potential to continue its impressive run and maintain its streak of revenue beats. As the company reports its results, investors will be looking for signs of growth and guidance on its future prospects.