Coca-Cola's stock leads Dow losers; revenue falls to lowest level in over 8 years
Coca-Cola Co.'s stock slumped 2.3% in morning trade, making it the biggest percentage decliner among Dow Jones Industrial Average components, after the beverage giant met fourth-quarter earnings expectations but provided a downbeat outlook for 2017. Revenue beat expectations, but reported revenue of $9.41 billion was the lowest quarterly total reported since the third quarter of 2009. Analyst Stephen Powers at UBS reiterated his buy rating on Coke, but expressed concern that growth seen during the quarter was "wholly pricing and mix driven," as concentrate volumes fell. Wells Fargo analyst Bonnie Herzog said she remained "cautious" on Coke, with a rating of market perform, given the outlook for "minimal" profit growth through 2018. The stock has now lost 5.2% over the past 12 months, while the SPDR Consumer Staples Select Sector ETF has gained 7.4% and the Dow has rallied 25.8%.
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