Group 1: Market Overview - Market uncertainty is high due to economic and geopolitical issues, with the S&P 500 index falling around 8% since the start of the year, having previously dropped by approximately 15% [1] - Consumer staples stocks have generally risen a couple of percentage points on average, but specific companies like PepsiCo have seen declines [1][2] Group 2: PepsiCo's Performance - PepsiCo's stock is down 7% this year and over 25% from its peak in 2023, facing challenges such as slowed revenue growth and investor perception issues [4][5] - The company is experiencing a slowdown in its salty snack business and is affected by a societal shift towards healthier eating habits [5] Group 3: Future Outlook - PepsiCo's guidance for 2025 includes low-single-digit organic sales growth and mid-single-digit core earnings-per-share growth, along with a 5% increase in dividends, marking the 53rd increase for the company [7] - The stock's dividend yield has risen to around 3.8%, indicating that it may be undervalued compared to historical levels, even higher than during the Great Recession [8][10] Group 4: Valuation Metrics - Traditional valuation metrics show that PepsiCo's price-to-sales, price-to-earnings, and price-to-book value ratios are all below their five-year averages, suggesting the stock is currently cheap [10] - The company is actively using acquisitions to reshape its portfolio, laying the groundwork for a potential rebound despite current challenges [11]

Shares of PepsiCo Inc. PEP tanked after the company reported a sales decline for the first quarter on Thursday.BofA Securities On PepsiCoAnalyst Bryan Spillane maintained a Neutral rating while reducing the price target from $155 to $150.PepsiCo reported its quarterly results broadly in line with consensus estimates, Spillane said in a note. Management’s 2025 earnings guidance reflects tariff costs of around 40 cents per share, he added.There is a lack of clarity around a recovery in US salty snacks, given ...

The share price of PepsiCo (PEP -5.00%), the food and beverage giant, was falling today after the company reported mixed results for its first quarter and cut its earnings forecast for the full year.PepsiCo is facing rising supply chain costs due to tariffs and slowing consumer spending amid an uncertain macroeconomic environment, the company said today.As a result, PepsiCo stock was down 4.6% as of 1:04 p.m. ET.PepsiCo lost its fizz in the first quarterPepsiCo reported first-quarter revenue of $17.9 billio ...

PepsiCo, Inc. (PEP) has reported robust first-quarter 2025 results, wherein revenues and earnings per share (EPS) missed the Zacks Consensus Estimate and declined year over year. PepsiCo's core gross margin was flat year over year, while its core operating margin experienced a decline.PEP’s first-quarter core EPS of $1.48 missed the Zacks Consensus Estimate of $1.50 and declined 8.1% year over year. In constant currency, core earnings fell 4% from the year-ago period. Its reported EPS of $1.33 fell 10% year ...

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, The ...

PepsiCo (PEP) came out with quarterly earnings of $1.48 per share, missing the Zacks Consensus Estimate of $1.50 per share. This compares to earnings of $1.61 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -1.33%. A quarter ago, it was expected that this food and beverage company would post earnings of $1.95 per share when it actually produced earnings of $1.96, delivering a surprise of 0.51%.Over the last four quarters, the ...

Bottles of Pepsi soda are displayed in a store on March 17, 2025 in New York City.PepsiCo on Thursday reported mixed quarterly results as its international sales offset weaker demand in North America.The food and beverage giant also cut its forecast for core constant currency earnings per share, citing new tariffs, economic volatility and a more cautious consumer."As we look ahead, we expect more volatility and uncertainty, particularly related to global trade developments, which we expect will increase our ...

Financial Performance - Net revenue for Q1 2025 decreased by 1.8% to $17.919 billion, compared to $18.250 billion in Q1 2024[2][16] - Earnings per share (EPS) reported at $1.33, reflecting a 10% decline from the previous year[2][16] - Organic revenue growth for Q1 2025 was 1.2%, with core EPS at $1.48, down 4% in constant currency[4][12] - Operating profit for Q1 2025 was $2.583 billion, down from $2.717 billion in Q1 2024[16] - The company reported a net income attributable to PepsiCo of $1.834 billion, compared to $2.042 billion in the same quarter last year[16] - Reported net income attributable to PepsiCo for the 12 weeks ended March 22, 2025, was $1.834 billion, with diluted EPS of $1.33 and an effective tax rate of 21.3%[55] - Core, non-GAAP net income for the same period was $2.031 billion, resulting in a diluted EPS of $1.48 and an effective tax rate of 20.4%[55] - Reported Net Revenue for the full year 2024 was $91.854 billion, a decrease of 2% compared to the prior year[103] Revenue Guidance - The company expects low-single-digit organic revenue growth for 2025, with core constant currency EPS projected to be approximately even with the prior year[6][11] - A foreign exchange translation headwind of approximately 3 percentage points is anticipated to negatively impact reported net revenue and core EPS growth[12] - The core constant currency EPS growth guidance for 2025 is projected to exclude the impact of foreign exchange translation, with specific figures not disclosed due to unpredictability[39] Shareholder Returns - Total cash returns to shareholders are expected to be approximately $8.6 billion, including $7.6 billion in dividends and $1.0 billion in share repurchases[14] - The company plans to increase its annualized dividend per share by 5% starting with the June 2025 payment, marking the 53rd consecutive annual increase[6] Asset and Liability Management - Total assets increased to $101.737 billion as of March 22, 2025, up from $99.467 billion on December 28, 2024, representing a growth of 2.55%[22] - Total current liabilities remained stable at $31.511 billion, compared to $31.536 billion in the previous period[22] - Long-term debt obligations rose to $39.419 billion, an increase from $37.224 billion, indicating a 5.9% increase in leverage[22] - The company’s retained earnings were reported at $72.238 billion, slightly down from $72.266 billion, indicating a decrease of 0.04%[22] Cost Management - Reported Gross Profit for the quarter was $9,993 million, with a Gross Margin of 55.8%[47] - Core Gross Profit, a non-GAAP measure, was $9,983 million, reflecting a Gross Margin of 55.7%[47] - Reported Operating Profit was $2,583 million, representing an Operating Margin of 14.4%[47] - Core Operating Profit, non-GAAP measure, reached $2,789 million, with an Operating Margin of 15.6%[47] - The total Reported Cost of Sales was $7,926 million, while the Core Cost of Sales was $7,936 million[47] - Selling, General and Administrative Expenses on a GAAP basis totaled $7,410 million, with Core Expenses at $7,194 million[47] Operational Challenges - PepsiCo is actively planning mitigation actions to address higher supply chain costs while focusing on long-term international business expansion[5][6] - The company experienced a product recall-related impact of $167 million, affecting both Gross and Operating Profit[51] - The company incurred restructuring and impairment charges of $133 million, which included various adjustments across different segments[109] - The impact of product recalls was recorded at $176 million, emphasizing the need for stringent quality control measures[109] Market Trends and Future Outlook - Future guidance indicates a focus on growth in emerging markets, with an emphasis on expanding product offerings and enhancing brand presence[112] - The company aims to leverage new technologies and product innovations to drive market expansion and improve competitive positioning[112] - Risks identified include potential supply chain disruptions and changes in consumer demand, which could affect future performance[112]

PepsiCo, Inc. (PEP) is expected to register top and bottom-line declines when it reports first-quarter 2025 numbers on April 24, before the opening bell.The Zacks Consensus Estimate for first-quarter revenues is pegged at $17.8 billion, implying a 2.7% decline from the year-ago quarter's reported figure. For quarterly earnings, the consensus mark is pegged at $1.51, suggesting 6.2% growth from the $1.61 reported in the prior-year quarter. The consensus mark for earnings has moved down 1.3% in the past 30 da ...

Group 1 - The article emphasizes the attractiveness of dividend stocks, particularly highlighting PepsiCo as a strong candidate for income generation due to its long history of dividend increases [1][2] - PepsiCo has raised its annual dividend payout for 53 consecutive years, currently offering a forward-looking dividend yield of 3.8%, which is considered high for a stock of its quality [2] - To generate $1,000 in income from PepsiCo's current quarterly payout of $1.355 per share, an investment of approximately $26,360 would be required, equating to 185 shares [3] Group 2 - Despite its strong dividend history, PepsiCo's stock price has experienced significant volatility, being down nearly 30% from its 2023 peak and reaching multiyear lows [4] - Diversification in dividend stocks is recommended, even for established companies like PepsiCo, which is a leader in the beverage and snack chip markets [5] - PepsiCo is considered one of the best options for a new dividend stock in a portfolio [6]