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The Coca-Cola Company (KO) Reports Dismal Earnings, Stock Plummets.

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The Coca-Cola Company (NYSE:KO) reported earnings which were way below market expectations. The stock plummeted by close to 7% on the back of heavy volumes which is being seen as a huge negative for the company going forward. The company reported a net income decrease of close to 14% in the third quarter. The company also reported muted volumes which is being seen as a huge negative for the stock going forward. Revenues for the company came in flat at $11.97 billion as against analyst estimate of $12.2 billion.The Coca-Cola Company (KO) Reports Dismal Earnings, Stock Plummets.

The company also cut its forward revenue guidance as it believed currency fluctuations might hurt earnings. The overall report from the company is being seen as a huge negative by the analyst and investor community. The Coca-Cola Company (NYSE:KO) has been facing volume growth issues in not only the domestic market in North America but also facing growth constraints in emerging market economies like India, China and Brazil.

The company said that it plans to achieve $3 billion in net savings from the year 2019 but this hasn’t been able to enthuse either investors or analysts. The company believes that its restructuring program is showing progress and would benefit the company in the long run.Apart from the carbonated drinks, demand was also lower for their juices and drinking water brands which is also a huge negative. Technical analysts on the street believe the shares of The Coca-Cola Company (NYSE:KO) would go lower in the near term as all indicators are pointing towards a shift towards the sell side. Fundamental analysts on the street believe that the company would have to do something out of the box to win back the confidence of investors who are now focussing on other growth stories and sectors.

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