Why Investors Soured on Coca-Cola Stock Today

Like a can of soda going flat, there was little fizz in Coca-Cola (NYSE: KO) stock on Wednesday. Investors traded out of it on news of third-quarter results, sending the share price down to close in excess of 2%. Even the lethargic S&P 500 index did better, closing barely over 1% below Tuesday's level.

Slight beats in the third quarter

In the quarter, Coca-Cola booked net revenue of $11.9 billion, which was 1% down from the same period of 2023. By contrast, non-GAAP (generally accepted accounting principles) adjusted net income saw a rise of 4% to over $3.3 billion. On a per-share basis, the latter metric tallied $0.77.

Both headline numbers were slightly above the consensus analyst estimates. These predicted $11.6 billion for revenue, and an adjusted, per-share net income figure of $0.74, according to data compiled by Yahoo! Finance.

In the earnings release, Coca-Cola quoted CEO James Quincey as saying that the company's performance shows that it "continues to demonstrate resilience in the face of a dynamic external environment."

"We are encouraged by our year-to-date performance and our system's ability to manage near-term challenges, while also remaining focused on long-term growth opportunities," he added.

Investors were hoping for more

Coca-Cola also updated its full-year 2024 guidance. It believes its organic (non-GAAP, or adjusted) revenue will rise by 10% over the 2023 figure; this growth was 9% in the third quarter. As for adjusted net income growth, this should come in at 5% over the $2.69 the company earned last year.

None of Coca-Cola's third-quarter figures were bad, certainly, but we're currently in a market that's expecting excellence. I don't feel anyone should be discouraged by the monster company's performance, particularly if they're income investors -- this Dividend King looks well on track to continue its ever-lengthening streak of dividend raises.

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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.