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PEP

Pepsi (PEP) Beats on Earnings & Sales in Q3 Despite Fx

PepsiCo, Inc. PEP is 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 did well in 2014 and so far in 2015.

Investors should note that the recent earnings estimate revisions for PEP have been mixed. However, PEP has an impressive track record in the earnings season. It has delivered positive earnings surprises in the trailing four quarters, making for an average positive earnings surprise of 5.38%.

Currently, PEP has a Zacks Rank #3 (Hold), 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 on earnings. Our consensus earnings estimate called for EPS of $1.26/share, and the company reported EPS of $1.35 instead. Investors should note that these figures take out stock option expenses.

Revenues: PEP reported revenues of $16.33 billion. This beat our consensus estimate of $16.19 billion.

Key Stats to Note: Revenues increased 7.4% on an organic basis, better than 5% in the previous quarter.

Stock Price: Shares rose more than 2% pre-market trading .

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

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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