Coca-Cola astonished its audience with its Super Bowl commercials but fails to impress the traders in its performance in the market just a few days after the sporting event.
The company’s stock is lacking its usual “umf” in fourth quarter and full-year financial result looked below standards. The Company’s incoming CEO even states that the beverage will be in volatile positions this year.
The Coca-Cola Company reported $9.4 billion in its fourth quarter revenue, a figure that impressively beat the $9.1 billion Wall Street consensus. However there was a 6% decline on a year-over-year basis.
The Net income for the beverage for the quarter came in at $550 million which was a devastating 56% slump and resulted in earnings of 13 cents per share. Not including one-time items, earnings per share were 37 cents for the quarter.
The company attributed its quarterly and full-year revenue decline to headwinds from foreign exchange and “acquisitions, divestitures and structure items”
James Quincey, Coke’s COO and incoming CEO, stated in a conference call with the analysts that despite strength in North America and certain parts of developing markets, weakness and macroeconomic issues in Brazil, Argentina and Venezuela that affected the company’s overall results.
Coke is projecting 3% growth in currency-neutral revenue which expects a 1% to 2% headwind that it could attain from currency fluctuations. It is forecasting 1% to 4% decline in its full-year earnings per share compared to its 2016 $1.95 per share.