Coca Cola Earnings In Focus
US beverage icon Coca Cola is due to report Q4 2021 earnings today and the release is drawing plenty of attention. KO shares have been in a firm upward trend since the December lows, printing a near 20% rally. Over the last 24 hours we’ve seen heavy selling, however, as traders take profits ahead of the Q4 earnings release. The company has seen strong performance over the last year, benefitting from the broad easing of restrictions and general pickup in activity and, while much of 2021’s price action was sideways, action over the last two months has been decidedly bullish with price breaking out to fresh all-time highs. So, the question now is whether today’s release will put an end to this bull run or provide the fuel for a further rally?
Looking at the expectations for the release, the market is forecasting earnings per share of $0.41 on revenues of $9.005 billion which would mark a slight drop in both. However, despite the forecasts, open interest on the options markets currently shows a far greater number of calls (upside bets) than puts (downside bets), suggesting room for an upside surprise.
Technical Views
KO
The rally in Coca Cola has seen share prices trading higher within a well defined bull channel. We’ve seen some bearish divergence creeping in on momentum studies recently, suggesting room for a correction lower which needs to be monitored. Any downside break of the channel will put focus on a test of 58.94 next and 57.53 below. However, while prices holds above the bull channel low, focus is on further upside.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.