Pepsico, Inc. (PEP - Analyst Report) is the largest food and beverage business in North America and the second largest in the world. The company boasts a diverse portfolio, both geographically and product wise. Its brand portfolio includes popular names like Pepsi, Mountain Dew, Gatorade, Tropicana, Lay's, Doritos, Cheetos and Quaker which generate more than $1 billion each in retail sales annually. Pepsi has the competitive advantage of selling both snacks and beverages which are complementary food categories.
Despite the ongoing global macro challenges, Pepsi did well in 2014 and so far in 2015.
Investors should however note the recent earnings estimate revisions for PEP as the consensus estimate has been mixed. However, PEP has an impressive history in earnings season. PEP has delivered positive earnings surprise in the trailing four quarters, making for an average positive earnings surprise of 5.38%.
Currently, PEP has a Zacks Rank #4 (Sell), but that could definitely change following Pepsi’s earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:
Earnings: PEP beat on earnings. Our consensus earnings estimate called for EPS of $1.23/share, and the company reported EPS of $1.32 instead. Investors should note that these figures take out stock option expenses.
Revenues: PEP reported revenues of $15.92 billion. This beat our consensus estimate of $15.81 billion.
Key Stats to Note: Revenues increased 5.1% on an organic basis, better than 4.4% in the previous quarter.
Stock Price: Shares were inactive in pre-market trading.
Update: See more detailed analysis here.
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