On Mar 27, 2014, we issued an updated research report on
he Coca-Cola Company
On Feb 18, the beverage company reported another dull quarter,
missing the Zacks Consensus Estimate for revenues and only
managing to meet earnings expectation as the U.S. beverage sales
Coca-Cola's fourth-quarter 2013 adjusted earnings of 46 cents
per share grew 7% year over year as strong gross margin and lower
taxes made up for soft revenues and higher marketing costs.
Revenues declined 4% year over year due to soft global
Changing consumer preferences, increasing health
consciousness, rising obesity concerns, possible new taxes on
sugar-sweetened beverages and growing regulatory pressures are
affecting sales of carbonated beverages of Coca-Cola as well as
other soft drink makers,
Dr Pepper Snapple Group, Inc.
). In fact, CSD category headwinds led to lower-than-expected
volume performance at Coca-Cola in 2013. Overall, the company's
revenues and profits in 2013 fell short of management's
Despite the 2013 headwinds, management aims to accelerate
growth in 2014 - "the year of execution." In 2014, the company
plans to accelerate growth of sparkling beverages, led by the
Coca-Cola brand. The company has increased marketing investments
and is driving package and product innovation to boost its
sparkling beverage volumes. Moreover, the company will expand its
still beverage portfolio and increase its brand building
investments to enhance volume growth.
Coca-Cola enjoys sound long-term fundamentals with its global
reach, strong brand power, expanding international presence,
powerful global bottling network and solid cash position.
Moreover, its increased focus on product/packaging innovation and
marketing strategies bode well for additional market share
Other Stocks to Consider
Coca-Cola carries a Zacks Rank #4 (Sell). A better-ranked
beverage stock is
Monster Beverage Corporation
), carrying Zacks Rank #2 (Buy).
DR PEPPER SNAPL (DPS): Free Stock Analysis
COCA COLA CO (KO): Free Stock Analysis Report
MONSTER BEVERAG (MNST): Free Stock Analysis
PEPSICO INC (PEP): Free Stock Analysis Report
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