PepsiCo (NASDAQ:PEP) Releases Earnings Results, Beats Expectations By $0.01 EPS

Key Points

• PepsiCo beat quarterly expectations, reporting EPS of $2.20 versus the $2.19 consensus and revenue of $24.18 billion, also topping estimates. Revenue rose 6.4% year over year from the same quarter last year.
• The stock fell 1.7% despite the earnings beat, with shares opening at $142.51 on Thursday after the release.
• PepsiCo raised its quarterly dividend to $1.48 per share from $1.42, implying a $5.92 annualized payout and a 4.2% yield.

PepsiCo (NASDAQ:PEP - Get Free Report) posted its quarterly earnings data on Wednesday. The company reported $2.20 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.19 by $0.01, FiscalAI reports. PepsiCo had a return on equity of 56.61% and a net margin of 9.15%.The firm had revenue of $24.18 billion for the quarter, compared to the consensus estimate of $23.95 billion. During the same quarter in the previous year, the business earned $0.92 EPS. The company's quarterly revenue was up 6.4% compared to the same quarter last year.

PepsiCo Stock Down 1.7%

Shares of NASDAQ:PEP opened at $142.51 on Thursday. PepsiCo has a fifty-two week low of $132.96 and a fifty-two week high of $171.48. The firm's 50 day moving average price is $146.14 and its 200 day moving average price is $151.63. 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 stock has a market cap of $194.78 billion, a price-to-earnings ratio of 22.37, a price-to-earnings-growth ratio of 2.92 and a beta of 0.36.

PepsiCo Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, June 30th. Investors of record on Friday, June 5th were issued a $1.48 dividend. This represents a $5.92 annualized dividend and a yield of 4.2%. This is a positive change from PepsiCo's previous quarterly dividend of $1.42. The ex-dividend date of this dividend was Friday, June 5th. PepsiCo's dividend payout ratio is 92.94%.

More PepsiCo News

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: PepsiCo beat revenue expectations, with global demand and international markets offsetting weaker North American sales. 5 Things to Know Before the Stock Market Opens on Thursday
• Positive Sentiment: Investors appear to be rewarding signs that PepsiCo’s turnaround efforts, including pricing actions and product changes, are helping stabilize performance. PepsiCo Stock Rises After Earnings Beat as Turnaround Plan Takes Hold

Wall Street Analyst Weigh In

Several equities analysts have weighed in on PEP shares. Deutsche Bank Aktiengesellschaft dropped their target price on PepsiCo from $173.00 to $168.00 and set a "buy" rating for the company in a research report on Thursday, June 18th. The Goldman Sachs Group raised their price objective on shares of PepsiCo from $180.00 to $183.00 and gave the company a "buy" rating in a research note on Friday, April 17th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of PepsiCo in a research note on Monday. Wells Fargo & Company decreased their price target on shares of PepsiCo from $160.00 to $150.00 and set an "equal weight" rating for the company in a research report on Friday, June 5th. Finally, Sanford C. Bernstein set a $142.00 price target on shares of PepsiCo and gave the stock a "market perform" rating in a research note on Wednesday, July 1st. Eight investment analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat, PepsiCo has a consensus rating of "Hold" and an average price target of $164.40.

Institutional Investors Weigh In On PepsiCo

A number of hedge funds and other institutional investors have recently modified their holdings of the company. United Bank grew its stake in shares of PepsiCo by 3.9% during the fourth quarter. United Bank now owns 1,717 shares of the company's stock worth $246,000 after purchasing an additional 65 shares in the last quarter. Pettinga Financial Advisors LLC raised its stake in PepsiCo by 3.8% in the fourth quarter. Pettinga Financial Advisors LLC now owns 1,880 shares of the company's stock valued at $270,000 after buying an additional 68 shares in the last quarter. Binnacle Investments Inc lifted its holdings in PepsiCo by 33.2% during the 2nd quarter. Binnacle Investments Inc now owns 285 shares of the company's stock worth $38,000 after buying an additional 71 shares during the last quarter. Richwood Investment Advisors LLC boosted its position in shares of PepsiCo by 1.7% during the 4th quarter. Richwood Investment Advisors LLC now owns 5,299 shares of the company's stock worth $761,000 after acquiring an additional 88 shares in the last quarter. Finally, Godshalk Welsh Capital Management Inc. boosted its position in shares of PepsiCo by 1.2% during the 4th quarter. Godshalk Welsh Capital Management Inc. now owns 8,425 shares of the company's stock worth $1,209,000 after acquiring an additional 100 shares in the last quarter. 73.07% of the stock is currently owned by institutional investors and hedge funds.

About PepsiCo

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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