COCA-COLA FALLS BELOW MA5 AFTER WEAK EARNINGS OUTLOOK
Coca-Cola is currently trading at 46.28-lower by 6.99% as compared to the previous closing price. In the pre-market trading session, the stock was trading lower by 3.80%. The stock has continued falling after the opening bell.
The company on Thursday reported fourth-quarter earnings that was in line with the market expectations. The global beverage giant forecasts its EPS in 2019 could rise or fall by 1%. It means the company could earn less than the $2.08 per share it earned in the last year. The market expected the company to earn $2.23 per share in 2019.
Coca-Cola has been battling currency headwinds, which it said hurt its Q4 earnings by 10%. Rising import and transportation costs in 2018 forced it to raise prices on its soft drinks in North America.
Coke generated EPS of 43 cents for the fourth quarter. The EPS met analysts’ expectations. The company brought in $7.06 billion in revenue for the fourth quarter. The revenue was above the market expectation of $7.04 billion.
On the technical front, the current price is below the MA5. The current price is below the lower band of the Bollinger Bands and is heading downwards. The RSI is currently at 34.44% and suggests that the market can move in the downward direction.
TRADE SUGGESTION- STOP SELL AT 46.25 TAKE PROFIT AT 46.05 STOP LOSS AT 46.35