PepsiCo (NASDAQ:PEP) Releases Quarterly Earnings Results, Beats Expectations By $0.03 EPS

Key Points

• PepsiCo reported earnings of $1.90 per share, missing analyst estimates by $0.36, while revenues slightly exceeded expectations at $23.94 billion.
• The company declared a quarterly dividend of $1.4225 per share, reflecting an annualized dividend yield of 4.1%.
• PepsiCo’s stock rating has seen mixed reviews from analysts, with a consensus rating of "Hold" and a price target decline from several investment firms.

PepsiCo (NASDAQ:PEP - Get Free Report) announced its quarterly earnings results on Thursday. The company reported $2.29 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.26 by $0.03, Zacks reports. The company had revenue of $23.94 billion during the quarter, compared to the consensus estimate of $23.91 billion. PepsiCo had a return on equity of 57.81% and a net margin of 8.23%.PepsiCo's revenue for the quarter was up 2.7% on a year-over-year basis. During the same period in the previous year, the business earned $2.31 EPS. PepsiCo updated its FY 2025 guidance to 8.120-8.120 EPS.

PepsiCo Trading Up 2.2%

Shares of NASDAQ PEP traded up $3.12 during midday trading on Thursday, reaching $141.96. 4,909,641 shares of the stock were exchanged, compared to its average volume of 8,344,439. The company has a market capitalization of $194.35 billion, a P/E ratio of 25.76, a P/E/G ratio of 3.55 and a beta of 0.46. PepsiCo has a 52-week low of $127.60 and a 52-week high of $177.50. The company has a current ratio of 0.78, a quick ratio of 0.60 and a debt-to-equity ratio of 2.12. The stock has a 50 day moving average price of $144.18 and a 200-day moving average price of $139.30.

PepsiCo Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, September 30th. Investors of record on Friday, September 5th were given a dividend of $1.4225 per share. This represents a $5.69 dividend on an annualized basis and a yield of 4.0%. The ex-dividend date was Friday, September 5th. PepsiCo's dividend payout ratio (DPR) is currently 103.64%.

Analyst Ratings Changes

A number of equities research analysts have weighed in on the company. Royal Bank Of Canada reduced their price objective on PepsiCo from $146.00 to $145.00 and set a "sector perform" rating for the company in a research note on Monday, September 15th. Cowen reaffirmed a "hold" rating on shares of PepsiCo in a report on Thursday, July 17th. BNP Paribas Exane reduced their price objective on PepsiCo from $152.00 to $150.00 and set a "neutral" rating for the company in a research note on Monday. UBS Group reduced their price objective on PepsiCo from $175.00 to $170.00 and set a "buy" rating for the company in a research note on Thursday, September 11th. Finally, Deutsche Bank Aktiengesellschaft restated a "buy" rating on shares of PepsiCo in a research note on Thursday, July 17th. Four equities research analysts have rated the stock with a Buy rating, fifteen have issued a Hold rating and two have given a Sell rating to the company. According to MarketBeat, PepsiCo currently has an average rating of "Hold" and a consensus price target of $158.13.

Institutional Trading of PepsiCo

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Geneos Wealth Management Inc. boosted its stake in shares of PepsiCo by 16.4% in the second quarter. Geneos Wealth Management Inc. now owns 16,485 shares of the company's stock valued at $2,177,000 after purchasing an additional 2,328 shares during the period. Evergreen Capital Management LLC raised its stake in PepsiCo by 18.2% during the 2nd quarter. Evergreen Capital Management LLC now owns 56,284 shares of the company's stock valued at $7,432,000 after acquiring an additional 8,666 shares in the last quarter. Strategic Investment Advisors MI raised its holdings in PepsiCo by 11.0% during the second quarter. Strategic Investment Advisors MI now owns 2,114 shares of the company's stock worth $279,000 after purchasing an additional 210 shares in the last quarter. CANADA LIFE ASSURANCE Co raised its position in PepsiCo by 16.9% in the second quarter. CANADA LIFE ASSURANCE Co now owns 2,343,335 shares of the company's stock worth $309,825,000 after acquiring an additional 338,332 shares in the last quarter. Finally, 44 Wealth Management LLC raised its position in shares of PepsiCo by 0.9% during the second quarter. 44 Wealth Management LLC now owns 15,162 shares of the company's stock worth $2,002,000 after purchasing an additional 137 shares during the period. Hedge funds and other institutional investors own 73.07% of the company's stock.

PepsiCo Company Profile

PepsiCo, Inc engages in the manufacture, marketing, distribution, and sale of various beverages and convenient foods worldwide. The company operates through seven segments: Frito-Lay North America; Quaker Foods North America; PepsiCo Beverages North America; Latin America; Europe; Africa, Middle East and South Asia; and Asia Pacific, Australia and New Zealand and China Region.