PepsiCo reported its fourth quarter earnings that topped analysts’ expectations. Revenue, too beat Street estimates. However, the beverage behemoth’s projection on the full-year performance fell short of analysts’ forecasts.
The company’s adjusted earnings came in at $1.53 a share, compared to $1.52 expected by analysts polled by Refinitiv.
Revenue of $25.25 billion also beat $24.24 billion expected.
The company’s organic revenue, which excludes acquisitions and divestitures, climbed +11.9% in the quarter.
Pepsi’s North American beverage division’s organic revenue grew +12%, as it ventured into developing new products like an energy drink with Starbucks.
Frito-Lay organic revenue rose by 13% for the quarter.
Quaker Foods North America’s organic revenue climbed +9%.
Latin America experienced the biggest quarterly jump in organic revenue, at +17%. Mexico, Brazil, Turkey, Spain, India, Egypt, China and Thailand had double-digit growth in the quarter.
In an interview with CNBC, Pepsi’s chief financial officer, Hugh Johnston, mentioned cost challenges, but said the company has the brand loyalty and pricing power to “get through the year with our margins pretty well intact.” Johnston added on an earnings call that he expects the company would increase prices again.
Pepsi predicts organic revenue growth of 6% for the full-year 2022. The company expects fiscal 2022 core constant currency earnings of $6.67 per share lower than analysts’ projections of $6.73.
The company expects to pay out around $7.7 billion to shareholders, including dividends of $6.2 billion and share buybacks of $1.5 billion, in the coming year.
The Stochastic Oscillator for PEP moved out of overbought territory on April 29, 2024. This could be a bearish sign for the stock and investors may want to consider selling or taking a defensive position. A.I.dvisor looked at 63 similar instances where the indicator exited the overbought zone. In of the 63 cases the stock moved lower. This puts the odds of a downward move at .
The 10-day RSI Indicator for PEP moved out of overbought territory on April 23, 2024. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 36 similar instances where the indicator moved out of overbought territory. In of the 36 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
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 .
PEP broke above its upper Bollinger Band on April 24, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Momentum Indicator moved above the 0 level on April 18, 2024. You may want to consider a long position or call options on PEP as a result. In of 103 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for PEP just turned positive on April 19, 2024. Looking at past instances where PEP's MACD turned positive, the stock continued to rise in of 46 cases over the following month. The odds of a continued upward trend are .
PEP moved above its 50-day moving average on April 17, 2024 date and that indicates a change from a downward trend to an upward trend.
The 50-day moving average for PEP moved above the 200-day moving average on May 01, 2024. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where PEP advanced for three days, in of 344 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 318 cases where PEP Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 74, placing this stock better than average.
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 (71.812). P/E Ratio (26.366) is within average values for comparable stocks, (31.998). Projected Growth (PEG Ratio) (2.864) is also within normal values, averaging (5.544). Dividend Yield (0.029) settles around the average of (0.027) among similar stocks. P/S Ratio (2.615) is also within normal values, averaging (3.113).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. PEP’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
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.
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