Earlier this week, Coca-Cola (KO) reported its fourth quarter results for the end of 2014. Because many analysts were expecting results somewhere in the $0.41 or $0.42 range, the price of the stock has increased to $42.50 after Coca-Cola reported that it made $0.44 per share in profits during the fourth quarter. The sentiment surrounding the stock has witnessed an uptick in popularity following Coca-Cola’s favorable results in light of expectations.
There is a negative context, however, that needs to be kept in mind. Coca-Cola’s fourth quarter results of $0.44 per share is still less than the $0.46 per share that Coca-Cola made in the fourth quarter of 2013, and the results for the year come to $2.05 in comparison to $2.08 in 2014. That is not entirely—it’s been a while since I have studied Coca-Cola’s profit history, manually counting the results at Coca-Cola since the 1920 IPO—but I seem … Read the rest of this article!