Pepsi (PEP, $168.58) beats Q4 earnings expectations; but full-year guidance is below analysts' projection
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.
PEP in upward trend: price may ascend as a result of having broken its lower Bollinger Band on May 02, 2022
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 19 of 35 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 54%.
Current price $175.47 crossed the support line at $170.41 and is trading between $186.51 resistance and $170.41 support lines. Throughout the month of 04/13/22 - 05/16/22, the price experienced a +1% Uptrend. During the week of 05/09/22 - 05/16/22, the stock enjoyed a +2% Uptrend growth.
The Momentum Indicator moved above the 0 level on May 13, 2022. You may want to consider a long position or call options on PEP as a result. In 50 of 95 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 53%.
Following a +2.97% 3-day Advance, the price is estimated to grow further. Considering data from situations where PEP advanced for three days, in 135 of 365 cases, the price rose further within the following month. The odds of a continued upward trend are 37%.
The Aroon Indicator entered an Uptrend today. In 159 of 354 cases where PEP Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 45%.
The 10-day RSI Indicator for PEP moved out of overbought territory on April 21, 2022. 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 53 similar instances where the indicator moved out of overbought territory. In 17 of the 53 cases, the stock moved lower in the following days. This puts the odds of a move lower at 32%.
The Stochastic Indicator entered the overbought zone. Expect a price pull-back in the foreseeable future.
The Moving Average Convergence Divergence Histogram (MACD) for PEP turned negative on April 29, 2022. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 44 similar instances when the indicator turned negative. In 15 of the 44 cases the stock turned lower in the days that followed. This puts the odds of success at 34%.
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 50 of 62 cases within the following month. The odds of a continued downward trend are 33%.
Tickeron has a negative outlook on this ticker and predicts a further decline by more than 4.00% within the next month with a likelihood of 51%. During the last month, the daily ratio of advancing to declining volumes was 1 to 1.06.
The Tickeron Profit vs. Risk Rating rating for this company is 7 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 79, placing this stock better than average.
The Tickeron Price Growth Rating for this company is 30 (best 1 - 100 worst), indicating outstanding 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 Valuation Rating of 31 (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: PEP's P/B Ratio (13.193) is slightly higher than the industry average of (4.722). P/E Ratio (23.753) is within average values for comparable stocks, (41.644). Projected Growth (PEG Ratio) (3.324) is also within normal values, averaging (6.081). Dividend Yield (0.025) settles around the average of (0.030) among similar stocks. P/S Ratio (2.987) is also within normal values, averaging (2.793).
The Tickeron PE Growth Rating for this company is 35 (best 1 - 100 worst), pointing to consistent 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 Tickeron SMR rating for this company is 46 (best 1 - 100 worst), indicating 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.
Non-alcoholic drinks include traces of alcohol or low alcohol content or without alcohol or alcohol removed. Functional Beverages, Carbonated Soft Drinks (CSDs), Sports Drinks, Fruit Beverages, and Bottled Water are some common types of non-alcoholic beverages. The largest segment in this market is soft drinks (think Pepsi and Coke). Many established companies in this space have also been stepping up production of low to zero-calorie varieties in recent years, to cater to a rising number of health-conscious consumers. Coca-Cola Company, Pepsico Inc, Keurig Dr Pepper Inc. and Monster Beverage Corporation are some major non-alcoholic beverage makers.
The average market capitalization across the Beverages: Non-Alcoholic Industry is 17.4B. The market cap for tickers in the group ranges from 7.8K to 284.9B. KO holds the highest valuation in this group at 284.9B. The lowest valued company is NTEI at 7.8K.
The average weekly price growth across all stocks in the Beverages: Non-Alcoholic Industry was -3.46%. For the same Industry, the average monthly price growth was -7.78%, and the average quarterly price growth was -3.34%. CCHGY experienced the highest price growth at 13.01%, while GHMP experienced the biggest fall at -65.22%.
- 3/19/22 4:49 AM: Pepsi (PEP, $162.79) was a top weekly gainer, with a +5.89% jump
- 3/11/22 6:01 AM: Pepsi (PEP, $154.51) was a top loser this week, declining -5.37%
The average weekly volume growth across all stocks in the Beverages: Non-Alcoholic Industry was 0.14%. For the same stocks of the Industry, the average monthly volume growth was 87.14% and the average quarterly volume growth was 52.33%
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Stocks in the group have a Negative Outlook today, backed by the Aroon Indicator. Tickeron has a negative outlook on this group and predicts a further decline by more than 4.00% within the next month with a likelihood of 42%. During the last month, the daily ratio of advancing to declining volumes was 1.11 to 1.
9 stocks in the group of tickers exhibit a similar negative trend based on the TrendMonth indicator with an average likelihood of 75%.
The most notable companies in this group are Coca-Cola Company (NYSE:KO), PepsiCo (NASDAQ:PEP).
The average market capitalization across the group is 27.6B. The market cap for tickers in the group ranges from 578.4K to 284.9B. KO holds the highest valuation in this group at 284.9B. The lowest valued company is GHMP at 578.4K.
The average weekly price growth across all stocks in the group was 1.25%. For the same group, the average monthly price growth was -8.34%, and the average quarterly price growth was 15.12%. CELH experienced the highest price growth at 30.82%, while GHMP experienced the biggest fall at -45.08%.
- 5/14/22 4:23 AM: Oatly Group AB (OTLY, $3.71) was a top weekly gainer, with a +11.75% jump
- 5/14/22 4:23 AM: Celsius Holdings (CELH, $56.38) was a top weekly gainer, with a +11.14% jump
- 5/14/22 4:23 AM: Coca-Cola Europacific Partners (CCEP, $52.25) was a top weekly gainer, with a +7.27% jump
The average weekly volume growth across all stocks in the group was 35.75%. For the same stocks of the group, the average monthly volume growth was 852.45% and the average quarterly volume growth was 1745.61%
- 5/14/22 4:16 AM: The volume for NewAge stock increased for one day, resulting in a record-breaking daily growth of 343% of the 65-Day Volume Moving Average
- 5/12/22 5:33 AM: The volume for Alkaline Water Company (The) stock increased for a consecutive 5 days, with an average daily gain of 223%
- 5/11/22 7:39 AM: The volume for Alkaline Water Company (The) stock increased for four consecutive days, resulting in a record-breaking daily growth of 244% of the 65-Day Volume Moving Average
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows