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Tale of the Tape

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Pepsi (PEP) Beats on Q3 Earnings and Revenues
September 29, 2016


Trades from $3

PepsiCo, Inc. (PEP - Analyst 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.

However, growing health and wellness consciousness is hurting carbonated soft drinks or CSD category growth.

Investors should note that the earnings estimate for PEP have remained over the past 30 days. Moreover, PEP has an impressive track record in the earnings season. It has delivered positive earnings surprises in all the past four quarters, bringing the average to a positive surprise of 5.62%.

Currently, PEP has a Zacks Rank #3 (Hold), but that could definitely change following Pepsi’s earnings report which was just released. You can see the complete list of today’s Zacks #1 Rank stocks here.

We have highlighted some of the key stats from this just-revealed announcement below:

PEPSICO INC Price and EPS Surprise


PEPSICO INC Price and EPS Surprise | PEPSICO INC Quote

Earnings: PEP beat earnings. Our consensus earnings estimate called for EPS of $1.32/share, and the company reported EPS of $1.40/share. Investors should note that these figures take out stock option expenses.

Revenues: PEP reported revenues of $16.03 billion. This surpassed our consensus estimate of $15.89 billion.

Key Stats to Note: Revenues increased 4.2% on an organic basis, higher than 3.3% in the previous quarter.

The company has increased its core EPS guidance for 2016 to $4.78 per share from its earlier expectation of $4.71.

Stock Price: Shares rose 0.58% in pre-market trading.

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

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