Coca-Cola Amatil Ltd's (ASX: CCL) share price has crept marginally higher over the last fortnight ahead of its earnings release on Wednesday 20 August, indicating investors may be starting to believe the worst conditions are now behind the business. Since the beginning of the month, the shares have risen 4.1% and are now trading at $9.61.
Despite the recent rise however, they are still sitting dramatically lower than 18 months ago when they hit an all-time high of $15.43. They have declined as a result of tumbling profits caused by aggressive competition, pressures from the supermarket giants and a strong Aussie dollar.
However, under the new leadership of Ms Alison Watkins, a strategic review has been undertaken to improve productivity measures and heavily reduce costs. An update on how the review is proceeding could give shareholders a fresh burst of confidence.
In addition, investors will also be looking for an update on the company's struggles against primary rival Schweppes, earnings growth in Indonesia as well as its dividend. Should its dividend fall too heavily compared to last year's amount, we could see the shares take another tumble.
Should you buy Coca-Cola Amatil Ltd today?
It's impossible to say which way Coca-Cola Amatil Ltd shares will go when they report next week. While good news on its strategic review or a more positive outlook could provide a significant boost for the shares, they could just as likely fall further – possibly below $9.00 – if none of these short-term issues are resolved.
Regardless of what happens, the company is currently trading at a very reasonable price. While they could fall or rise following next week's result, long-term focused investors should strongly consider buying a position.