PepsiCo Inc. (NASDAQ: PEP) released a stellar Q2 earnings report on July 13, beating estimates; PEP stock swelled 2.38% and 4.36% pre-market. The beverage industry giant surpassed earnings and revenue expectations despite a drop in demand for its food and drinks. The company also raised its full-year outlook for consecutive quarters.
PepsiCo Inc. (PEP Stock) – Earnings Report and Financial Analysis
The Dow Futures fell by 0.2% to 55 points, S&P 500 Futures gained 0.4% to 16 points, and NASDAQ 100 Futures swelled 0.7% to 108 points. Also, in June 2023, U.S. inflation cooled more than expected, with the annual Consumer Price Index (CPI) down to 3%. The drop is significant because it’s a full 1% low from May 2023.
PepsiCo Inc. was also named a Top Socially Responsible Dividend Stock by Dividend Channel. Indicating NASDAQ: PEP’s above-average Dividend Ranking, with a 2.8% yield. The annualized dividend paid by the beverage giant is $5.06 per share and is currently settled in installments, with the last date being June 1, 2023.
At press time, NASDAQ: PEP is training at $187.53 after gaining 2.38%; previous close and open were at $183.17 and 185.80, respectively. The 52-week range is from $160.98 to $196.88, indicating that the current price is noticeably above its lower end. With an average volume of 4.67 Million shares, the market cap is $258.358 Billion.
The trailing twelve-month (ttm) price to earnings (P/E) is 39.40, indicating a fairly valued stock. At the same time, the (ttm) earnings per share (EPS) is $4.76. Analysts placed a price target at $189.58 with a 1.1% upside and provided a 2.33 rating for HOLD.
The Q1 earnings were reported on April 25, 2023, while the Q2 earnings were reported on July 13, 2023. Total revenue jumped from $17.84 Billion to $22.32 Billion. At the same time, gross profit increased from $9.40 Billion to $12.20 Billion. Earnings per share was estimated for Q2 at $1.963, but it surpassed the estimates by 6.48% to $2.09.
The operating income increased from $2.94 Billion to $3.82 Billion. For 2023, the company hopes for 10% growth in organic revenue, which previously was around 8%. PepsiCo also raised its core constant earnings outlook from an expected 9% to 12% and the net income jumped from $1.93 Billion to $2.75 Billion.
The beverage giant’s net sales gained 10.4% to $22.32 Billion, while the company’s organic revenue showcased a growth of 13%. Pretax income jumped from 2.49 Billion in Q1 to $3.52 Billion in Q2 2023, while the price-to-cash flow (P/CF) ratio swelled from 23.40 to 23.52.
PepsiCo Inc. (PEP Stock) – Candle Exploration
The current price is brushing the crucial resistance, and the latest earning could push the price to cross the $187.81 point. Ascending long-term trend line, the upward trajectory of EMA, and the RSI value of 56.95, along with a positive cross-over, indicate positive momentum. However, a clear momentum would be visible if the price sustains above the crucial resistance.
Negative momentum would follow if the price drops below the S1 at $179.15; if so, the price shall consolidate above S2 at $169.81 before deciding the future course of action. Since December 2022, the price has been trying to sustain above the $187.91 mark but is failing consistently. Maybe the recently released positive earnings report could make it happen.
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Source: https://www.thecoinrepublic.com/2023/07/14/pepsico-inc-pep-stock-earnings-report-beats-expectations/