Earnings Recap Cheat Sheet: Coca-Cola (KO) Fizzles on Estimates, but Shares Rise

Earnings: Q2 profits of $1.02 vs. $1.03 consensus and $.88 in Q2 last year.

Revenue: Increased 5% Year-over-Year at $8.67 Billion vs. $8.7 Billion consensus.

Muhtar Kent, Coca-Cola Chairman and CEO, said, “It is clear, however, that the state of the global economy remains uncertain in many regions, affected by ongoing deficit concerns in Europe, recent downward revisions to China’s economy and weakened consumer confidence. While this uncertainty weighs on us all, we remain resolute in our commitment to invest in our global operations and our brands for the long-term. Even during these challenging times, our brand equity is growing stronger around the world…Looking forward to the balance of the year, we remain cautious, yet confident in our ability to deliver our 2010 plan while continuing our efforts to achieve our 2020 Vision through consistent long-term profitable growth.”

Comment: Shares of Coca-Cola (NYSE: KO) are up over 1% this morning following the company’s earnings release, trading at $54 per share, compared to yesterday’s closing price of $53.24 per share.

I wrote about Coca-Cola in February earlier this year in an article titled, ‘Battle of the Beverage Behemoths Coke vs. Pepsi,’ when the stock was trading at $53.79 per share. Fast forward to this morning, over 5 months later, and shares are just $.20 higher, yet Coca-Cola (KO) pays a 3.2% annual dividend. KO has always been a risk-averse, safe investor’s dream. The share price trades in a tight range in the $50’s and pays a dividend. Thus, the decision to enter KO shares is contingent up the proper timing of entry. As you can note in the chart above, KO shares are trading above its 50-day moving average and slightly below its 200-day moving average. If KO shares can climb above its 200-day moving average solidly and hold there, I would see such a technical move as a confident reinforcement to consider adding Coca-Cola shares to your safe portfolio.

For more detailed information on the Coca-Cola earnings release, visit here.

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Disclosure: No holdings in KO.