PepsiCo is scheduled to release its third-quarter earnings report on October 5, 2021. This release will forecast the company’s third-quarter earnings report based on the company’s previous quarterly report. The company achieved record net revenue and earnings per share in the second quarter. PepsiCo reported net income of $2.36 billion, or $1.70 per share, up from $1.65 billion, or $1.18 per share, a year ago.

Annual net sales increased by 20.5% to $19.22 billion, exceeding forecasts of $17.96 billion. Organic sales increased by 12.8% when foreign currency, investments, and divestitures were excluded.

Pepsi’s American beverage segment experienced the highest organic sales growth of the group’s divisions during the quarter, at 21%. The volume of its beverages increased by 15% during the quarter, and foodservice revenue quadrupled, which includes sales to restaurants, stadiums, and college campuses.

Frito-Lay North America, which includes Doritos and Cheetos, increased revenue by 6%. Convenience stores and foodservice outlets aided in the growth of sales as consumers became more mobile. As a result, the category has seen robust sales throughout the pandemic. It had grown organically by 6% the previous year.

Quaker Foods North America was the only sector to report a decline in organic revenue. Its volume decreased by 21%, resulting in a 14% decline in organic revenue. Organic sales increased by 23% year over year as consumers increased their breakfast consumption at home, increasing demand for maple syrup and oatmeal. According to Pepsi, organic revenue for the segment increased by 9% over the previous two years. Prior to the pandemic, it was the smallest component of Pepsi’s company.

Following such a good quarter, the firm now forecasts an 11% increase in constant currency profits per share, up from its earlier projection of high single digits. For 2021, the forecasted core profits per share are $6.20. Analysts for the whole year predicted an earnings increase of 7.2%.

Pepsi also lowered its organic sales growth projection for 2021 from the mid-single digits growth to 6%. As a result, the company’s estimates are more cautious, which may help it surpass expectations in the second half of the year .

Most investors who follow the stock expect earnings to grow slower than revenues, which increased by 4% to $1.73 per share in Q3. However, owing to Pepsi’s increasing sales presence and ambitious development investments in sectors like energy drinks, the longer-term picture is one of improving profit margins .

Chart

PepsiCo stock analysis

Although the company is gaining ground on organic sales, the stock price has declined since August 20. Although then it hit a high of 159, it has since been fluctuating between 150 and 159. The most recent drop came on September 30, when the price went below 150 for the first time since July 2021.

The price is below the 100-day MA on the daily chart, and the MACD is pointing downwards. This suggests a mild downtrend. Considering the overall scenario, the next resistance for PepsiCo lies around 166. If the price crosses this level, it could travel towards the $180 mark.

On the other hand, the stock’s support lies at 140. If the price breaches this level, it could further deescalate to the 130 mark .

Disclaimer: Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of purchase or sale of any financial instrument.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

EUR/USD holds above 1.0700 after US inflation data

EUR/USD holds above 1.0700 after US inflation data

EUR/USD stays in the lower half of its daily range but continues to trade above 1.0700 in the early American session on Friday. The data from the US showed that the annual Core PCE Price Index declined to 4.9% in April as expected, making it difficult for the dollar to gather strength.

EUR/USD News

GBP/USD trades above 1.2600 as dollar struggles to find demand

GBP/USD trades above 1.2600 as dollar struggles to find demand

GBP/USD clings to daily gains above 1.2600 and remains on track to end the week in positive territory. The greenback struggles to attract investors after the data from the US showed that PCE inflation softened in April. 

GBP/USD News

Gold pulls away from daily highs, holds above $1,850

Gold pulls away from daily highs, holds above $1,850

Gold has lost its traction in the second half of the day on Friday and declined toward the $1,850 area. The benchmark 10-year US Treasury bond yield staged a modest rebound on the US PCE inflation data, not allowing XAU/USD to preserve its bullish momentum.

Gold News

Terra’s LUNA 2.0 support expands with Binance and Kraken welcoming the airdrop, here’s how you need to prepare

Terra’s LUNA 2.0 support expands with Binance and Kraken welcoming the airdrop, here’s how you need to prepare

Terra’s LUNA fork proposal has passed with 65.5% votes, Revival Plan 2 in action without algorithmic stablecoin UST. LUNA price could wipe out losses incurred by holders in the colossal crash of LUNC and UST. 

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!

BECOME PREMIUM

Forex MAJORS

Cryptocurrencies

Signatures