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Coca-Cola (NYSE:KO) releases its first-quarter earnings on April 16, at 9:30 am. and below I have provided a summary of earnings expectations as well as a fundamental analysis supporting the purchase of this tried and true value company.

Coca-Cola has a market cap of $182.10 billion and currently trades for $40.90 per share. Shares are up 13.5% YTD and trade 17% above their 52-week low of $34.94. Analysts have a mean price target of $42.46 and a median price target of $43.00. Fourteen analysts have an average EPS estimate of $0.45 on estimated revenues of $11.05 billion. In the past four quarters (per YAHOO! Finance), KO has either equaled or exceeded its earnings per share estimates as evidenced below:

(click to enlarge)

Fundamental Highlights

  • P/E of 20.5 and D/E of 0.4 are below the industry averages 22.8 and 0.6 respectfully.
  • Revenue growth over the past 3 years has averaged 15.7% (industry averages 6.2%).
  • Operating margins of 22.4% and net margins of 18.8% are both above the industry averages 17.4% and 12.0% respectfully.
  • KO has a dividend yield of 2.58%.
  • In 2012 KO repurchased (net stock issued) $3.07 billion of its common shares.
  • Wide moat and strong supply/distribution chain enable easy addition of still beverages (growing demand) and other profitable beverages like teas and coffees.
  • KO is in perfect position to capitalize on growing populations and emerging markets (global volumes up 4% last year).

Bottom Line

Coca-Cola's wide moat and far-reaching distribution channels allow it to take advantage of new trends and growing beverage demands. With emerging markets still growing, KO's future looks bright and any dip in price only provides a better entry for new shareholders or those looking to add to their position.

Disclosure: I am long KO. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Source: Time To Fill Up On Coca-Cola? Highlights And Earnings Expectations