CNBC's Jim Cramer said Wednesday that as earnings season begins, it's wise to keep in mind that sometimes bad news is baked into a stock's price before the report. Cramer pointed to Wall Street's reaction to PepsiCo in the lead-up to, and wake of, its Tuesday report. He noted how shares dipped but managed to recover even though the company posted a revenue miss. "This is something you need to keep in mind as we head into earnings season: If a stock has already sold off hard going into the quarter, it's very ...

On Oct 8, PepsiCo ( PEP, Financial) reported its Q3 quarterly results for this year, showing a slower-thananticipated recovery of the U.S. consumer. The snack and beverage giant scaled back its full-year outlook for organic sales growth to a "low-single-digit" increase, down from the previously projected 4%. "The recovery of the consumer in the U.S., frankly, has been slower than we had anticipated," CFO Jamie Caulfield stated during a conference call with analysts. This sentiment echoes CEO Ramon Laguarta' ...

PepsiCo cut its full-year organic revenue forecast on Tuesday after the company reported softer-than-expected sales figures and business disruptions from geopolitical tensions that impacted the company in the third quarter. The snack and beverage giant's 2024 organic revenue growth outlook changed from 4% to a "low-single-digit increase." It projected that international organic revenue growth would surpass that of North America for the year. The company also doubled-down on expectations for growth of "at le ...

PepsiCo, Inc. (PEP) has reported robust third-quarter 2024 results, wherein earnings surpassed the Zacks Consensus Estimate and improved year over year. However, the company's top line missed the consensus mark and declined year over year. Top-line results have been mainly affected by subdued category demand in its convenient food business and the impacts of a product recall in the QFNA segment. PepsiCo's third-quarter core EPS of $2.31 beat the Zacks Consensus Estimate of $2.30 and increased 2.7% year over ...

Financial Data and Key Metrics - The company delivered at the high end of its EPS long-term target despite a challenging consumer environment [13] - Organic revenue growth is expected to remain in the low single-digit range, with a half-point drag from geopolitical impacts on international markets [38] Business Line Data and Key Metrics - Frito-Lay North America saw a 3-point increase in household penetration for Lays due to summer investments in the potato chips category [20] - The permissible portfolio, including brands like SunChips, Simply, and PopCorners, is growing rapidly and represents a $2 billion business [35] - The beverage business is growing slightly faster than the food business globally, with strong performance in Southeast Asia, India, and Brazil [26] Market Data and Key Metrics - In the US, Frito-Lay is focusing on multicultural offerings, value offerings, and premium brands like Miss Vickie's to drive growth [7][8] - International markets like China and Mexico are experiencing deceleration due to consumer constraints and geopolitical factors [25] - The Middle East is facing challenges due to geopolitical tensions, but local teams are navigating the situation effectively [26] Company Strategy and Industry Competition - The company is investing in automation, digitalization, and global capability centers to drive productivity and cost transformation [11][12] - PepsiCo is focusing on evolving its portfolio to meet consumer trends, such as permissible snacks and unstructured mini-meals, particularly targeting Gen Z [51][52] - The acquisition of Siete is expected to enhance the company's permissible snack offerings and align with long-term consumer trends [53] Management Commentary on Operating Environment and Future Outlook - Management remains confident in the long-term growth potential of both the snacks and beverage categories, citing global relevance and healthy growth in many markets [16] - The company is balancing short-term investments in affordability and brand-building with long-term strategic initiatives, such as sustainability and portfolio evolution [13][22] - Despite near-term challenges, management believes the energy drink category will recover as consumer traffic in convenience stores improves [60] Other Important Information - The company is investing in bonus packs and brand events for Tostitos and Doritos to capitalize on the fall and winter seasons, particularly around NFL gatherings [20] - PepsiCo is expanding into new channels beyond retail to create additional occasions for its brands, particularly in under-penetrated areas [22] Q&A Summary Question: What are the building blocks for Frito-Lay's return to volume growth? - The company sees long-term growth potential in the US food business, driven by Gen Z's snacking patterns and mini-meal trends [6] - Frito-Lay is focusing on multi-tier opportunities within its potato chips category, including core Lays, premium brands like Miss Vickie's, and permissible options like baked chips [7][8] Question: How is the company balancing investment and cost-cutting to re-accelerate top-line growth? - PepsiCo is deploying productivity platforms, including supply chain automation, digitalization, and global capability centers, to create optionality for future investments [11][12] - The company is managing productivity systematically while continuing to invest in A&M, sustainability, and long-term transformation [13] Question: Can PepsiCo deliver 8% EPS growth if organic revenue growth remains low? - Management believes the category will grow faster than 1% long-term, driven by investments in brand health and innovation [15] - The company is focusing on productivity and long-term category health to deliver profitable growth [16] Question: What is the initial payback from Frito-Lay's recent actions, and what are the next steps? - Summer investments in Lays drove a 3-point increase in household penetration, and similar strategies will be applied to Doritos and Tostitos in the fall [20] - The company is leaning more on value offerings while maintaining long-term investments in portfolio evolution [22] Question: How are international markets performing, particularly in convenience foods versus beverages? - While some markets like China and Mexico are decelerating, others like Southeast Asia, India, and Brazil are growing strongly [25] - The beverage business is outperforming the food business globally, with pockets of strength in Eastern Europe and Brazil [26] Question: What is the outlook for Frito-Lay margins and reinvestment? - The company is prioritizing consumer demand stimulation over margin expansion in the near term, with a focus on total PepsiCo margin [45] - Frito-Lay margins are expected to remain pressured until summer 2025 due to reinvestment efforts [42] Question: Is the slowdown in Frito-Lay cyclical or structural? - Management views the slowdown as cyclical, driven by affordability concerns, and believes long-term trends like permissible snacks and mini-meals will support growth [51][52] - The acquisition of Siete aligns with the company's strategy to capture permissible snack occasions and evolving consumer preferences [53] Question: How is the Gatorade transition progressing, and what is the outlook for PBNA margins? - Gatorade's market share in the sports category has improved, and Propel is growing double-digit, contributing to the DSD system's efficiency [56] - PBNA is on track to achieve mid-teens margins in a few years, driven by productivity initiatives and portfolio optimization [49][50] Question: What is the outlook for the energy drink category and Celsius? - The energy drink category is expected to recover as consumer traffic in convenience stores improves [60] - PepsiCo remains optimistic about its partnership with Celsius, with distribution points and service levels continuing to rise [61]

For the quarter ended September 2024, PepsiCo (PEP) reported revenue of $23.32 billion, down 0.6% over the same period last year. EPS came in at $2.31, compared to $2.25 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $23.9 billion, representing a surprise of -2.45%. The company delivered an EPS surprise of +0.43%, with the consensus EPS estimate being $2.30. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how ...

Investors looking to enter PepsiCo NASDAQ: PEP stock or build on existing positions should rejoice. The FQ3 2024 earnings report was weaker than expected, causing the stock price to dip. While weaker-than-expected results and a soft outlook for revenue aren't news to be happy about, the tally isn't as bad as headlines make it seem, and there is the long-term outlook to consider. PepsiCo Today | --- | --- | |-----------------------|-------| | | | | PEP PepsiCo | | | $167.92 | | | +0.71 (+0.42%) | | | 52-Week ...

Key Takeaways PepsiCo reported declining third-quarter revenue and profit as the beverage and snack giant said inflation has continued to impact consumer spending. The company again lowered its sales outlook for the year, expecting a low-single-digit sales bump from fiscal 2023, down from an estimated 4% gain previously. Company leadership said that inflation continues "to impact budgets and spending patterns." PepsiCo (PEP) reported declining third-quarter revenue and profit, and again lowered its full-yea ...

PepsiCo Today PEP PepsiCo $167.21 -0.76 (-0.45%) 52-Week Range $157.43 ▼ $183.41 Dividend Yield 3.24% P/E Ratio 24.27 Price Target $185.29 Add to Watchlist It's not very often that investors get to pick up a value deal from the stock market. Still, when these sorts of opportunities come around, everyone should get involved before the chance is erased. Consumer staple companies, particularly, are not known for volatility or discounts as markets know their value and stability throughout the business cycle. Th ...

PepsiCo (PEP) came out with quarterly earnings of $2.31 per share, beating the Zacks Consensus Estimate of $2.30 per share. This compares to earnings of $2.25 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of 0.43%. A quarter ago, it was expected that this food and beverage company would post earnings of $2.15 per share when it actually produced earnings of $2.28, delivering a surprise of 6.05%. Over the last four quarters, the ...