We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Soft drink bellwether Coca-Cola Company (KO - Free Report) reported earnings yesterday and PepsiCo Inc. (PEP - Free Report) reported last week. Both giants came up with upbeat earnings, auguring well for the consumer staples sector. Let’s delve a little deeper.
Coca-Cola Beats Overall
The Coca-Cola Company (KO - Free Report) has reported fourth-quarter 2023 results, wherein the top and bottom lines surpassed the Zacks Consensus Estimate. Earnings and sales also improved year over year. The company’s results have benefited from its continued business momentum. KO has outlined its view for 2024.
Comparable earnings of 49 cents per share improved 10% from the year-ago period and beat the Zacks Consensus Estimate of 48 cents. However, unfavorable currency translations hurt comparable earnings by 13 percentage points. Comparable currency-neutral earnings per share rose 23% year over year. Revenues of $10,849 million surpassed the Zacks Consensus Estimate of $10,645 million and improved 7% year over year.
Management has outlined its view for 2024. It anticipates organic revenue growth of 6-7 for 2024. Comparable revenues are expected to include a 3-4% currency headwind based on current rates. The guidance includes a 4-5% negative impact of acquisition and divestiture. It anticipates an underlying effective tax rate of 19.2% for 2024.
PepsiCo Earnings Beat Estimates, Revenues Miss
PepsiCo Inc. (PEP - Free Report) has reported robust fourth-quarter 2023 results, wherein earnings surpassed the Zacks Consensus Estimate and improved year over year. The top line missed the consensus estimate and declined year over year.
PepsiCo’s fourth-quarter core EPS of $1.78 beat the Zacks Consensus Estimate of $1.72 and increased 6.6% year over year. In constant currency, core earnings improved 9% from the year-ago period, backed by the mitigation of inflationary pressures through cost-management and revenue-management initiatives.
The company’s reported EPS of 94 cents rose 152% year over year in the quarter. Adverse currency rates impacted EPS by 2% in the quarter. Net revenues of $27,850 million declined 0.5% year over year and missed the Zacks Consensus Estimate of $28,242 million.
ETFs in Focus
Against this backdrop, investors may be interested in knowing about the Coke and PepsiCo-heavy ETFs along with their stocks. This is because an ETF approach offers one to bet on both stocks. Coca-Cola and PepsiCo each has exposure to funds like Consumer Staples Select Sector SPDR Fund (XLP - Free Report) , Fidelity MSCI Consumer Staples Index ETF (FSTA - Free Report) and Vanguard Consumer Staples ETF (VDC - Free Report) in the range of 8% to 11%.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Coke-Pepsi Earnings Put These ETFs in Focus
Soft drink bellwether Coca-Cola Company (KO - Free Report) reported earnings yesterday and PepsiCo Inc. (PEP - Free Report) reported last week. Both giants came up with upbeat earnings, auguring well for the consumer staples sector. Let’s delve a little deeper.
Coca-Cola Beats Overall
The Coca-Cola Company (KO - Free Report) has reported fourth-quarter 2023 results, wherein the top and bottom lines surpassed the Zacks Consensus Estimate. Earnings and sales also improved year over year. The company’s results have benefited from its continued business momentum. KO has outlined its view for 2024.
Comparable earnings of 49 cents per share improved 10% from the year-ago period and beat the Zacks Consensus Estimate of 48 cents. However, unfavorable currency translations hurt comparable earnings by 13 percentage points. Comparable currency-neutral earnings per share rose 23% year over year. Revenues of $10,849 million surpassed the Zacks Consensus Estimate of $10,645 million and improved 7% year over year.
Management has outlined its view for 2024. It anticipates organic revenue growth of 6-7 for 2024. Comparable revenues are expected to include a 3-4% currency headwind based on current rates. The guidance includes a 4-5% negative impact of acquisition and divestiture. It anticipates an underlying effective tax rate of 19.2% for 2024.
PepsiCo Earnings Beat Estimates, Revenues Miss
PepsiCo Inc. (PEP - Free Report) has reported robust fourth-quarter 2023 results, wherein earnings surpassed the Zacks Consensus Estimate and improved year over year. The top line missed the consensus estimate and declined year over year.
PepsiCo’s fourth-quarter core EPS of $1.78 beat the Zacks Consensus Estimate of $1.72 and increased 6.6% year over year. In constant currency, core earnings improved 9% from the year-ago period, backed by the mitigation of inflationary pressures through cost-management and revenue-management initiatives.
The company’s reported EPS of 94 cents rose 152% year over year in the quarter. Adverse currency rates impacted EPS by 2% in the quarter. Net revenues of $27,850 million declined 0.5% year over year and missed the Zacks Consensus Estimate of $28,242 million.
ETFs in Focus
Against this backdrop, investors may be interested in knowing about the Coke and PepsiCo-heavy ETFs along with their stocks. This is because an ETF approach offers one to bet on both stocks. Coca-Cola and PepsiCo each has exposure to funds like Consumer Staples Select Sector SPDR Fund (XLP - Free Report) , Fidelity MSCI Consumer Staples Index ETF (FSTA - Free Report) and Vanguard Consumer Staples ETF (VDC - Free Report) in the range of 8% to 11%.