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NEW YORK (TheStreet) -- Coca-Cola (KO) - Get Coca-Cola Company Report was falling 3.9% to $37.40 on Tuesday after the beverage maker missed analysts' expectations for fourth-quarter revenue and said that soda sales decreased in North America. 

For the fourth quarter, Coca-Cola reported earnings of 46 cents a share, in-line with analysts' estimates. Revenue fell 3.6% from a year earlier to $11.04 billion; analysts called for $11.31 billion in revenue. 

Sales volume dropped by 1% in North America in the quarter. While the company saw strong growth for its Powerade brand and other noncarbonated drinks, it was offset by a 3% decline in soda sales.

Global sales rose by 1%, however, largely thanks to gains in Europa, Asia, and Africa.

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TheStreet Ratings team rates COCA-COLA CO as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about its recommendation:

"We rate COCA-COLA CO (KO) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, notable return on equity, good cash flow from operations, expanding profit margins and increase in net income. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • COCA-COLA CO has improved earnings per share by 8.0% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, COCA-COLA CO increased its bottom line by earning $1.96 versus $1.85 in the prior year. This year, the market expects an improvement in earnings ($2.08 versus $1.96).
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Beverages industry and the overall market, COCA-COLA CO's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • Net operating cash flow has slightly increased to $3,756.00 million or 2.56% when compared to the same quarter last year. In addition, COCA-COLA CO has also modestly surpassed the industry average cash flow growth rate of -6.47%.
  • The gross profit margin for COCA-COLA CO is rather high; currently it is at 64.29%. Regardless of KO's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, KO's net profit margin of 20.34% compares favorably to the industry average.
  • KO, with its decline in revenue, slightly underperformed the industry average of 3.1%. Since the same quarter one year prior, revenues slightly dropped by 2.5%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.s
  • You can view the full analysis from the report here: KO Ratings Report