Coca-Cola Femsa's Earnings Outlook

Coca-Cola Femsa KOF is set to give its latest quarterly earnings report on Friday, 2024-10-25. Here's what investors need to know before the announcement.

Analysts estimate that Coca-Cola Femsa will report an earnings per share (EPS) of $1.35.

Anticipation surrounds Coca-Cola Femsa's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.

New investors should understand that while earnings performance is important, market reactions are often driven by guidance.

Earnings Track Record

Last quarter the company beat EPS by $0.03, which was followed by a 0.0% drop in the share price the next day.

Here's a look at Coca-Cola Femsa's past performance and the resulting price change:

Tracking Coca-Cola Femsa's Stock Performance

Shares of Coca-Cola Femsa were trading at $85.07 as of October 23. Over the last 52-week period, shares are up 13.22%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Insights Shared by Analysts on Coca-Cola Femsa

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Coca-Cola Femsa.

The consensus rating for Coca-Cola Femsa is Outperform, based on 1 analyst ratings. With an average one-year price target of $110.0, there's a potential 29.31% upside.

Analyzing Ratings Among Peers

In this comparison, we explore the analyst ratings and average 1-year price targets of and National Beverage, three prominent industry players, offering insights into their relative performance expectations and market positioning.

• As per analysts' assessments, National Beverage is favoring an Sell trajectory, with an average 1-year price target of $45.0, suggesting a potential 47.1% downside.

Key Findings: Peer Analysis Summary

The peer analysis summary outlines pivotal metrics for and National Beverage, demonstrating their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Key Takeaway:

Coca-Cola Femsa ranks higher than its peers in terms of revenue growth and gross profit. However, it lags behind in terms of return on equity.

Delving into Coca-Cola Femsa's Background

Coca-Cola Femsa, a subsidiary of Femsa, is the largest franchise bottler of wide-moat Coca-Cola in volume terms. The company purchases beverage concentrates and syrup from Coca-Cola, which it then processes and packages for distribution through modern trade, traditional trade and the on-premises channel. Mexico and Brazil make up 80% of total sales, with the rest from other Central and South American countries, including Panama, Guatemala, Uruguay, and Argentina. Parent Femsa and Coca-Cola hold 47% and 28% of economic interests in Coca-Cola Femsa, through nonpublicly traded A and D shares, respectively, while controlling 56% and 33% of the respective voting power.

Coca-Cola Femsa's Economic Impact: An Analysis

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

Revenue Growth: Over the 3 months period, Coca-Cola Femsa showcased positive performance, achieving a revenue growth rate of 13.07% as of 30 June, 2024. This reflects a substantial increase in the company's top-line earnings. When compared to others in the Consumer Staples sector, the company excelled with a growth rate higher than the average among peers.

Net Margin: Coca-Cola Femsa's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of 8.07%, the company may face hurdles in effective cost management.

Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of 4.53%, the company may need to address challenges in generating satisfactory returns for shareholders.

Return on Assets (ROA): Coca-Cola Femsa's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of 1.98%, the company may face hurdles in achieving optimal financial performance.

Debt Management: Coca-Cola Femsa's debt-to-equity ratio is below the industry average at 0.56, reflecting a lower dependency on debt financing and a more conservative financial approach.

To track all earnings releases for Coca-Cola Femsa visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.