Why Coca-Cola (KO) Stock Is Sinking Today

NEW YORK (TheStreet) -- Shares of The Coca-Cola Co. (KO) are lower by -3.08% to $41.09 in mid-morning trading on Tuesday, after the soda maker reported a drop in revenue and earnings for the 2014 second quarter.

For the most recent quarter Coca-Cola reported earnings per share of 58 cents, compared to 64 cents for the 2013 second quarter.

Coca-Cola's revenue declined 1% to $12.57 billion.

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Analysts polled by Thomson Reuters expected Coke to report earnings of 63 cents per share on revenue of $12.83 billion, the Wall Street Journal reports.

Coca-Cola's decline in profit and revenue can be attributed to the decrease in soda consumption, the Journal said

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

"We rate COCA-COLA CO (KO) a BUY. This is driven by multiple 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 expanding profit margins, good cash flow from operations, reasonable valuation levels and notable return on equity. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."

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