Why Coca-Cola (KO) Stock Continues to Drop Today
NEW YORK (TheStreet) -- Shares of Coca-Cola (KO) - Get Report continue to decline, now down 0.53% to $40.46, on high volume in morning trading Wednesday after the beverage company reported third-quarter earnings that came up short of analysts' expectations.
Coca-Cola posted a 14% year-over-year decline in net income to $2.1 billion from $2.45 billion. Adjusted earnings per share were 53 cents, which matched analysts' estimates. Revenue dipped to $11.98 billion from $12 billion in the same period last year, less than the consensus estimate of $12.1 billion.
Coca-Cola's case volume for the quarter was short of analysts' estimates, and the Atlanta-based company warned that currency headwinds could affect its profits.
Separately, TheStreet Ratings team rates COCA-COLA CO as a "buy" with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate COCA-COLA CO (KO) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its expanding profit margins, notable return on equity and solid stock price performance. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."
- You can view the full analysis from the report here: KO Ratings Report
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