The Coca-Cola (KO) company is watching its stock drop 0.35% after a decent earnings report was released to its shareholders.

The earnings report gave good news, that Coca-Cola beat earnings estimates with a revenue of $11.30 billion against the expected $11.01 billion. The soft drink giant beat the estimates on earnings per share as well, bringing in 72 cents per share as opposed to the expected 70 cents.

First quarter net income for Coca-Cola was $3.18 billion, which is an increase from $3.11 billion for the previous year. Net sales for the company increased by 3%, and organic sales were up 11%. Organic sales do not include acquisitions, foreign exchange, or divestitures.

Coca-Cola’s volume grew as well, with an increase of 2%, and the company was able to increase its outlook for revenue accordingly.

All of that good news, however, was not enough to save the company from experiencing a minor stock dip.

Why Is Coca-Cola’s Stock Down?

The company saw a decline in coffee, tea, water, and sports drinks divisions, which fell by 2%. The company said there is less demand for these products than there was last quarter. This contributed only somewhat to the small stock decline, though.

We believe Coca-Cola is a minor victim of a tough market right now. The stock market is looking at a month of loss of about 2-3% for each of the major indices. This is from high inflation and a struggling US economy.

As inflation remains high, stock values will have a hard time staying positive after quarterly reports unless the numbers look very good. Because Coca-Cola reported growth that was muted and minor, its stock price suffered, hit by growing concerns about the company and inflation and what those factors will do to the bottling company in the near future.