Erste Group Bank Reduces Earnings Estimates for PepsiCo

Key Points

• Erste Group Bank slightly trimmed its FY2027 earnings-per-share estimate for PepsiCo to $9.14 from $9.15, still above the current consensus estimate of $8.63.
• Wall Street remains mixed but cautious on PepsiCo: the stock has a consensus rating of Hold, with eight Buy ratings, ten Hold ratings, and one Sell rating, and an average target price of $169.58.
• PepsiCo recently beat quarterly expectations, reporting EPS of $1.61 on revenue of $19.44 billion, and also raised its quarterly dividend to $1.48 per share from $1.42.

PepsiCo, Inc. (NASDAQ:PEP - Free Report) - Erste Group Bank dropped their FY2027 earnings per share estimates for shares of PepsiCo in a note issued to investors on Friday, June 5th. Erste Group Bank analyst S. Lingnau now anticipates that the company will post earnings of $9.14 per share for the year, down from their prior estimate of $9.15. The consensus estimate for PepsiCo's current full-year earnings is $8.63 per share.

A number of other research analysts have also weighed in on PEP. Weiss Ratings reaffirmed a "hold (c)" rating on shares of PepsiCo in a report on Wednesday, April 8th. HSBC lifted their target price on PepsiCo from $175.00 to $176.00 and gave the company a "hold" rating in a report on Friday, April 17th. Royal Bank Of Canada reduced their target price on PepsiCo from $165.00 to $163.00 and set a "sector perform" rating for the company in a report on Thursday, April 9th. UBS Group reduced their target price on PepsiCo from $190.00 to $186.00 and set a "buy" rating for the company in a report on Tuesday, April 7th. Finally, Piper Sandler lifted their target price on PepsiCo from $172.00 to $181.00 and gave the company an "overweight" rating in a report on Thursday, March 12th. Eight equities research analysts have rated the stock with a Buy rating, ten have issued a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, the stock has a consensus rating of "Hold" and an average target price of $169.58.

PepsiCo Stock Up 1.1%

PEP stock opened at $144.32 on Thursday. The company has a quick ratio of 0.72, a current ratio of 0.90 and a debt-to-equity ratio of 1.98. The firm has a market capitalization of $197.25 billion, a PE ratio of 22.66, a PEG ratio of 2.59 and a beta of 0.35. PepsiCo has a twelve month low of $127.60 and a twelve month high of $171.48. The stock has a 50-day simple moving average of $151.55 and a two-hundred day simple moving average of $152.44.

PepsiCo (NASDAQ:PEP - Get Free Report) last announced its quarterly earnings data on Wednesday, April 15th. The company reported $1.61 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.55 by $0.06. The business had revenue of $19.44 billion for the quarter, compared to analysts' expectations of $18.89 billion. PepsiCo had a return on equity of 56.61% and a net margin of 9.15%.The firm's quarterly revenue was up 8.5% compared to the same quarter last year. During the same period in the previous year, the business posted $1.48 EPS.

PepsiCo Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, June 30th. Stockholders of record on Friday, June 5th will be issued a dividend of $1.48 per share. The ex-dividend date of this dividend is Friday, June 5th. This is a positive change from PepsiCo's previous quarterly dividend of $1.42. This represents a $5.92 annualized dividend and a dividend yield of 4.1%. PepsiCo's payout ratio is presently 92.94%.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of PEP. Auto Owners Insurance Co grew its holdings in shares of PepsiCo by 14,857.8% during the fourth quarter. Auto Owners Insurance Co now owns 49,252,907 shares of the company's stock worth $7,068,777,000 after purchasing an additional 48,923,629 shares in the last quarter. Norges Bank purchased a new position in shares of PepsiCo during the fourth quarter worth about $3,018,813,000. Diamant Asset Management Inc. grew its holdings in shares of PepsiCo by 16,146.5% during the first quarter. Diamant Asset Management Inc. now owns 3,586,423 shares of the company's stock worth $556,936,000 after purchasing an additional 3,564,348 shares in the last quarter. AQR Capital Management LLC grew its holdings in shares of PepsiCo by 120.7% during the third quarter. AQR Capital Management LLC now owns 5,916,417 shares of the company's stock worth $830,902,000 after purchasing an additional 3,235,726 shares in the last quarter. Finally, Amundi boosted its stake in PepsiCo by 30.0% in the third quarter. Amundi now owns 8,641,588 shares of the company's stock worth $1,207,230,000 after buying an additional 1,995,362 shares in the last quarter. Hedge funds and other institutional investors own 73.07% of the company's stock.

Key Stories Impacting PepsiCo

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: PepsiCo expanded its autonomous logistics push by deploying driverless trucks to deliver chips and drinks across Texas, Arizona, and Arkansas, signaling potential cost savings and supply-chain efficiency gains. PepsiCo and Gatik launch commercial driverless trucking deployment
• Positive Sentiment: Reports that PepsiCo’s driverless Doritos fleet is already operating at scale and outpacing Tesla’s robotaxi rollout may be viewed as a win for PepsiCo’s innovation image and operational execution. PepsiCo’s driverless Doritos fleet outpaces Tesla’s robotaxis in North Texas
• Positive Sentiment: PepsiCo and Gatik said they launched the largest commercial driverless trucking deployment to date, which could boost investor confidence in PepsiCo’s logistics modernization and long-term margins. PepsiCo and Gatik launch commercial driverless trucking deployment
• Positive Sentiment: PepsiCo launched “House of Treats,” a new experiential beverage platform aimed at premium away-from-home channels, suggesting new growth opportunities beyond core soda and snacks. PEPSI® GLOBAL LAUNCHES PEPSI 'HOUSE OF TREATS' A NEW AWAY FROM HOME EXPERIENTIAL BEVERAGE PLATFORM
• Positive Sentiment: Several research-style articles argued PepsiCo remains a strong long-term growth or rebound candidate, which can reinforce bullish sentiment around the stock. Why PepsiCo (PEP) is a Top Growth Stock for the Long-Term
• Neutral Sentiment: Analysts’ average recommendation remains “Hold,” indicating Wall Street is constructive but not aggressively bullish on the name right now. PepsiCo, Inc. NASDAQ: PEP Given Average Recommendation of "Hold" by Analysts
• Neutral Sentiment: PepsiCo’s recent stock pullback has prompted valuation-focused commentary, suggesting some investors are weighing whether the shares have become cheaper after the decline. Is It Time To Reconsider PepsiCo (PEP) After The Recent 9% Share Price Pullback

PepsiCo Company Profile

PepsiCo, Inc NASDAQ: PEP is a multinational food and beverage company headquartered in Purchase, New York. The company develops, manufactures, markets and sells a broad portfolio of branded food and beverage products, including carbonated and noncarbonated soft drinks, bottled water, sports drinks, juices, ready-to-drink teas and coffees, salty snacks, cereals, and other convenient foods. Its leading consumer brands include Pepsi, Mountain Dew, Gatorade, Tropicana, Quaker, Lay's, Doritos and Cheetos, among others.

Formed through the 1965 merger of Pepsi-Cola and Frito-Lay, PepsiCo has grown into a global business with integrated manufacturing, distribution and marketing operations.

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