Why Coca-Cola (KO) Is Down Today

NEW YORK (TheStreet) -- Coca-Cola (KO) 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:

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