Back to top

Image: Bigstock

Pepsi (PEP) Earnings Beat; Sales Miss Estimates in Q2

Read MoreHide Full Article

PepsiCo, Inc. (PEP - Free Report) is one of the largest food and beverage business in North America and the second largest in the world. The company boasts a diverse portfolio, both geographically and product wise. Pepsi’s product portfolio includes 22 Billion Dollar brands including Pepsi, Mountain Dew, Gatorade, Tropicana, Lay's, Doritos, Cheetos and Quaker which generate more than $1 billion each in retail sales annually.Pepsi has the competitive advantage of selling both snacks and beverages which are complementary food categories.

Despite the ongoing global macro challenges, Pepsi has been doing well owing to its significant innovation, ongoing revenue management strategies, improved productivity and better market execution. Notably, despite a volatile macroeconomic environment, slowing growth rate and significant currency headwinds, Pepsi has done well in the emerging markets. On top of it Pepsi has been seeing higher volumes and profits in the North American segments – both snacks and beverages - due to an improving economy, better industry pricing dynamics and positive innovation consistently.

PEPSICO INC Price and EPS Surprise

PEPSICO INC Price and EPS Surprise | PEPSICO INC Quote

Investors should note that the earnings estimate revisions for PEP have been mostly mixed over the past 60 days. Moreover, PEP has an impressive track record in the earnings season. It has delivered positive earnings surprises in three of the past four quarters, bringing the average to a positive surprise of 6.09%.

Currently, PEP has a Zacks Rank #2 (Buy), but that could definitely change following Pepsi’s earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:

Earnings: PEP beat earnings. Our consensus earnings estimate called for EPS of $1.28/share, and the company reported EPS of $1.35/share. Investors should note that these figures take out stock option expenses.

Revenues: PEP reported revenues of $15.40 billion. This marginally missed our consensus estimate of 15.41 billion.

Key Stats to Note: Revenues increased 3.3% on an organic basis, slightly less than 3.5% in the previous quarter.

Stock Price: Shares rose 1.6% in pre-market trading.

Check back later for our full write up on this PEP earnings report later!

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


PepsiCo, Inc. (PEP) - free report >>

Published in