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 saw its Momentum Indicator move above the 0 level on April 18, 2024. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 105 similar instances where the indicator turned positive. In of the 105 cases, the stock moved higher in the following days. The odds of a move higher are at .
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 61 cases where PEP's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that 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 10-day moving average for PEP crossed bullishly above the 50-day moving average on March 21, 2024. This indicates that the trend has shifted higher and could be considered a buy signal. In of 16 past instances when the 10-day crossed above the 50-day, the stock continued to move higher 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 342 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 319 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 10-day RSI Indicator for PEP moved out of overbought territory on April 01, 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 .
The Moving Average Convergence Divergence Histogram (MACD) for PEP turned negative on April 04, 2024. 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 46 similar instances when the indicator turned negative. In of the 46 cases the stock turned lower in the days that followed. This puts the odds of success 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 March 18, 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 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 76, 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 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 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