Pepsi (PEP, $155.25) crushes fiscal Q2 expectations
PepsiCo. posted its fiscal second quarter earnings that surpassed analysts’ expectations.
The beverage giant’s adjusted earnings for the quarter came in at $1.72, compared to $1.53 expected by analysts polled by Refinitiv.
Revenue increased more than +20% year-over-year to $19.22 billion , also exceeding analysts’ expectation of $17.96 billion.
Net sales climbed +20.5% year-over-year to $19.22 billion, vs. analysts’ expectations of $17.96 billion. Organic revenue (which excludes foreign currency impact, acquisitions and divestitures) rose 12.8%.
PepsiCo.’s North American beverage business generated an organic revenue growth of 21%, the highest of all of Pepsi’s divisions during the quarter. The Quaker Foods North America segment was the only business to report decreasing organic revenue (a -21% fall in the segment’s volume led to a -14% decrease in organic revenue ).
The company narrowed its projection for 2021 organic revenue growth from mid-single digits to 6%.
Pepsi now projects + 11% growth in constant currency earnings per share, higher than its prior forecast of high-single digit growth. The forecast implies core earnings per share of $6.20 for 2021. Analysts had forecast full-year earnings growth of 7.2%.
The company also expressed its plans to expand the duration and scope of its five-year productivity program. It expects to generate at least $1 billion in annual savings through 2026.
PEP in upward trend: price may jump up because it broke its lower Bollinger Band on May 14, 2025
PEP may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In of 43 cases where PEP's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where PEP's RSI Indicator exited the oversold zone, of 25 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for PEP just turned positive on May 15, 2025. Looking at past instances where PEP's MACD turned positive, the stock continued to rise in of 47 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where PEP advanced for three days, in of 340 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 64 cases where PEP's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
The Momentum Indicator moved below the 0 level on May 21, 2025. You may want to consider selling the stock, shorting the stock, or exploring put options on PEP as a result. In of 93 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where PEP declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for PEP entered a downward trend on May 23, 2025. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (12.853) is normal, around the industry mean (6.809). P/E Ratio (26.366) is within average values for comparable stocks, (32.900). Projected Growth (PEG Ratio) (2.864) is also within normal values, averaging (5.903). Dividend Yield (0.029) settles around the average of (0.026) among similar stocks. P/S Ratio (2.615) is also within normal values, averaging (3.355).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. PEP’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. PEP’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 68, placing this stock worse than average.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
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General Information
a provider of a diversified line of soft drinks and snack foods
Industry BeveragesNonAlcoholic
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