PepsiCo released its latest quarterly earnings and revenue that topped analysts’ expectations, on the back of advertising and marketing impact.
The beverage giant’s adjusted earnings for the fiscal third-quarter came in at $1.56 per share, exceeding the $1.50 expected by analysts polled by Refinitiv.
Revenue of $17.19 billion also beat analysts’ estimate of $16.93 billion.
Pepsi’s organic revenue grew by +4.3% in the quarter.
The company’s increased advertising has been cited as a major drive behind consumers purchase of Pepsi products, as indicated by CFO Hugh Johnston in a CNBC interview.
Pepsi’s North American beverage business grew +3.5%.
Frito Lay North America, which includes brands like Cheetos and Doritos, experienced revenue growth of +5.5% for the quarter.
What’s more, Pepsi’s apparent drive to cater to an increasingly health-conscious population seems to be paying off. Revenue growth from its healthier snacks' brands like Bare and Off the Eaten Pat (alongwith its popular chip brands) helped offset the double-digit sales declines of Sabra hummus and guacamole dips. Pepsi owns a 50% stake in the hummus maker through a joint venture with Strauss Group.
The brand’s no-sugar line, Gatorade Zero, which launched in May 2018, topped $500 million in retail sales. Meanwhile, Bubly continues to gain market share in the flavored sparkling-water category against rivals like La Croix (as mentioned in CNBC).
The RSI Indicator for PEP moved out of oversold territory on July 02, 2024. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 16 similar instances when the indicator left oversold territory. In of the 16 cases the stock moved higher. This puts the odds of a move higher at .
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a provider of a diversified line of soft drinks and snack foods
Industry BeveragesNonAlcoholic