Pre-Market: The Coca-Cola Company Earnings Falter; Herbalife to Report Earnings Amidst Government Criticism

By Vincent Trivett  FEB 18, 2014 9:02 AM

Shares of Coca-Cola fell after the soft-drink company announced that earnings dropped by 8% in the fourth quarter.

 


US stocks futures were flat after the long weekend. The Coca-Cola Company (NYSE:KO) also fell in pre-market trading after a weaker-than-expected quarterly report.

Following last week's rise, Dow (INDEXDJX:.DJI) futures were up 0.06% to 16,136 before the opening bell on Tuesday. S&P 500 (INDEXSP:.INX) futures ticked down 0.05% to 1,834.00. After the Nasdaq Composite (INDEXNASDAQ:.IXIC) broke its all-time record from July 2000 on Friday, futures on the index sank 0.04% to 3,659.50.

Shares of Coca-Cola fell 0.9% after the soft-drink company announced that earnings dropped by 8% in the fourth quarter. Earnings per share fell to $0.38 from $0.41 a year earlier. Revenue fell 3.6% to $11.04 billion. Excluding currency fluctuations and structural changes, revenue grew 4%. Analysts had expected EPS of $0.46 on $11.04 billion.

Bloomberg reported today that Netflix, Inc's (NASDAQ:NFLX) talks with Time Warner Cable (NYSE:TWC) to keep its service on set-top boxes are on hold due to the latter's merger with Comcast (NASDAQ:CMCSA). Comcast directly competes with Netflix, selling film downloads. If Comcast, the largest cable provider, succeeds in swallowing up Time Warner, the second largest, its X1 set-top box platform could have more clout competing with Apple (NASDAQ:AAPL) TV, TiVo (NASDAQ:TIVO), and others. Netflix shares were up 0.53% this morning.

After today's close, Herbalife Ltd. (NYSE:HLF), the multilevel marketer, will report earnings. Analysts expect the company, which was famously shorted and called a pyramid scheme by hedge fund manager Bill Ackman, to deliver earnings per share of $1.24 per share, up from $1.05 a year prior. Earlier this month, the company said that sales for the quarter may have risen nearly 20% in the quarter. On the earnings call, we might learn more about the government's criticism of its sales models. Recently, Senator Edward Markey of Massachusetts called on the SEC and FTC to investigate the company. The Senator's concerns echoed Ackman's.

In economic news, the New York Federal Reserve's New York metro-area manufacturing report fell to 4.5 in February from 12.5 in January. A smaller drop was expected as the region was hit with a solid month of bad winter weather.

Later this morning, the NAHB's housing market index for February is likely to stay flat at 56 points. Germany's ZEW investor confidence survey for this month fell by six points to 55.7. Economists had expected to see the index stay flat at 61.7

Twitter: @vincent_trivett
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.